- BitMEX vs Deribit Review: Which One Is Better? - CoinDiligent
- Trading on BitMEX - BitMEX - BitMEX | Bitcoin Mercantile
Deribit has a simple user interface that displays a variety of bitcoin options, including expiry dates and strike prices. Moreover, Deribit is one of the only exchanges that have standardized bitcoin options making it a go-to platform for cryptocurrency options traders.
BitMEX vs Deribit Review: Which One Is Better? - CoinDiligent
Trading on BitMEX - BitMEX - BitMEX | Bitcoin Mercantile
As a result, when the trade completes, you will realize profits for $6555 worth of Bitcoin contracts purchased instead of $755, minus the loan’s interest rate and trading fees imposed by the exchange.
You must monitor your liquidation price. If the market rises, you can “create” more Bitcoin to post as margin by selling fiat, purchasing Bitcoin, and selling futures. In a bull market, the premium should expand, therefore, creation of Bitcoin earns positive carry.
Alternatively, you can also post your quote request as a limit order, enabling anyone to fill it. The order can be cancelled at any time, and will expire automatically after 79 hours if it wasn’t filled.
With Bitcoin binary options, this is reduced to a simple prediction whether Bitcoin will fall to a lower value than its current price. If you are correct, you win a specific payout amount, while risking only the cost of your option premium.
The OTM options will trade cheap because the strike price is far enough away from the current spot price to dampen the premium. You pay less for an outcome that is less likely to happen. If the trader is wrong, he only loses the premium. This way, traders construct leveraged positive convexity trades.
Since the choices are either low leverage offered at the exchange level, or high leverage offered by a broker (with the risk of total financial ruin), traders in search of safe leverage must resort to options. By purchasing out of the money (OTM) call and put options, traders can enjoy much higher leverage and limited liability.
Since BitMEX provides extremely high-value content through its BitMEX research blog, and features the larger array of support options, comparing BitMEX vs Deribit on this front paints BitMEX as the superior choice.