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Deribit Removes Futures Trading Fees for year-End Promotion

Source: bitcoin

deribit

Deribit, a bitcoin futures and options exchange platform, has removed all trading fees for the rest of 2016 as part of a promotion to drive more customers to the service.

Disclaimer: This article is sponsored by Bitcoin PR Buzz.

Deribit CMO Marius Jansen offered a simple explanation of the reasoning behind the company’s decision to remove trading fees for the remainder of 2016.

“We want to introduce our platform to anyone interested in Bitcoin futures and options trading,” he said. “So we decided to offer free trading until the end of the year.”

According to the exchange, traders stand to make more profit on the platform now that fees have been removed, which they think will incentivize people to use their service.

Calling itself the “only full-featured Bitcoin futures and options platform,” the company provided press with a list of “key features” traders can find on the exchange:

  • Trading plain vanilla European style cash-settled options on the Deribit BTC index with margin.
  • Trading BTC futures that settle on the Deribit BTC index, with up to 20x leverage.
  • Allowance for placing volatility orders, where the Deribit price engine continuously updates the price of the order as to keep the implied volatility of the order fixed. With this feature, basic market making is already possible for any trader opening an account on the platform.
  • Real-time risk management with incremental auto-liquidation: If an account has a maintenance margin higher than its equity, the Deribit risk engine will liquidate its position in small steps, providing maximal protection for all parties involved. Liquidations are small and instantaneous, again ensuring fairness for everyone.
  • A 100BTC insurance fund to cover bankruptcies. Any bankruptcy is published in real time on the platform. Deribit aims to completely avoid socialized losses. The platform’s risk management system is built such way that it is extremely difficult to go bankrupt even if one tries to do so.
  • Trading via REST, Websockets API or FIX bridge. High-performance API that can handle even hundreds of requests per second from a single account.

Deribit Faces Competition

Bitcoin-based futures trading is a novel service, with Deribit being one of the first platforms to provide such vehicles. However, Crix, another bitcoin exchange that provides futures trading, stands as competition to Deribit.

Crix uses math-based analysis to manage portfolio risk, claiming that it gives traders a better chance at larger profits. “Real mathematics stands behind many aspects of trading today,” Crix founder Dmitry Koval told Bitcoinist in July. “This includes the volatility modeling and the Value at Risk method we use at our platform.”

Competition aside, Deribit  said it provides trading services that cannot be found elsewhere, and is confident its zero-fee promotion will get more people to try out the platform

What do you think about bitcoin futures platforms? Have you ever traded bitcoin futures? Let us know in the comments below!  


Images courtesy of Deribit.

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Deribit Removes Futures Trading Fees for year-End Promotion

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Mathematics Drives Crix Bitcoin Futures Trading

Source: bitcoin

Mathematics Drives Crix Bitcoin Futures Trading

Dmitry Koval, founder of Crix.io, a cryptocurrency trading platform, said in a recent interview: “Our mission is to contribute to the community and ecosystem by creating the best niche products such as exchange-traded futures contracts suitable for hedging and high-leveraged trading.”

Disclaimer: This article was provided by the Vanbex Group. Bitcoinist is not affiliated with the firms represented by the Vanbex Group and is not responsible for their products and/or services. 

Mathematical Bitcoin Trading With Crix

Crix

In the cryptocurrency world, where volatility can swing at even circumspect news, precision and probability must co-mingle. To gather a behavioral understanding of cryptocurrencies — to discern its movement within a probabilistic range — requires a significant degree of analytical depth predicated on vital access to historical information.

“Real mathematics stands behind many aspects of trading today. This includes the volatility modelling and the Value at Risk method we use at our platform,” said Koval.

At Crix they analyse hundreds of time periods back to then help determine the end of the next period within a certain range and probability. Like the guess of a coin-flip, understanding the percentages are a guide to making an educated assessment.

“With bitcoin, it is way more complex, but the principle is the same,” said Koval, adding, “We use a two-stage approach to determine price limits.”

In the first stage, the historical volatility of the BTC/USD market is assessed to find the mathematical function that best corresponds to the volatility data. The information is then calibrated based on the historical data sample.

Next, a Value at Risk analysis is run on the out-of-sample historical data set in order to predict a single-period price range within a given accuracy.

“Both volatility modelling and VaR techniques are widely used these days for portfolio risk management on different markets,” said Koval.

Of the cryptocurrency varieties Crix does support — Bitcoin, Litecoin, Dash, Namecoin, Doge, Peercoin and Nextcoin — there is a noticeable gap, however, ether.

Koval said, “We are going to open ETH to BTC trading at our spot section in the nearest time. We are going to introduce futures contracts as well.”

The only challenge for futures contracts is the historical data, explained Koval.

“We need 500 to 1,000 periods back to get good results for the model.”

Crix’s flagship product is its futures platform. Most efforts in development and marketing, according to Koval, go toward this part of Crix’ trading system.

However, the Crix platform also offers a spot section where users can locate benchmark prices on alternative coins (altcoins), allowing people to exchange them to bitcoins and trade futures collateralised in bitcoins without a need to use another provider.

It’s simple, convenient and honest.

“The shorter contract term at Crix (three hours, 24 hours) is the trade-off for totally mitigated slippage risk and full transparency of all the calculations,” said Koval.

“We don’t have any proprietary parameters which are changing throughout the session and therefore, no manipulation is possible by design.”

Furthermore, margin calls are prevented by setting particular trading rules.

Prices throughout the session, whether for a three hour or 24-hour contract, are limited to model-predicted limits so a trader cannot place an order priced outside of these limits, said Koval.

“Therefore, none of the traders can lose more than their initial collateral during the session.”

Visit Crix.io for more information and to test the company’s platform.


Images courtesy of Wall-Pix.net, Crix.io.

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Mathematics Drives Crix Bitcoin Futures Trading

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