With the introduction of its new “Nitro Spreads” feature on its institutional Liquid Marketplace, an OTC, futures spreads, and options liquidity network, OKX, the second-largest cryptocurrency exchange by trading volume and a leading Web3 technology company, has made it possible for traders to execute complex basis trades with just one click.

When carried out correctly, basis trading, a method that involves trading the difference between an asset’s price on two different markets, such as spot and futures, can produce profits. Managing both sides of the trade concurrently is usually necessary, which is time-consuming. Utilizing the platform’s superior liquidity and low latency for optimal user advantage, OKX’s Nitro Spreads automates this complicated trade in just one click.

The two legs of the trade are completed using a central orderbook with Nitro Spreads, one of the only basis trading tools in the cryptocurrency sector, removing leg risk between marketplaces. Before a trade is executed, traders can choose a guaranteed spread, reducing the risk of unanticipated price slippage. Following that, trades are immediately matched and settled.

OKX Global Chief Commercial Officer Lennix Lai said: “In the current complex market environment, institutions demand reliability, predictable returns and genuine innovation when choosing a trading venue. This is especially true in basis trading, where precision is paramount. Nitro Spreads raises the bar for the industry for efficient basis trading, and we invite institutional traders everywhere to see how it can enhance their strategies and contribute to their success.”

Through the user-friendly interface of Nitro Spreads, institutional traders can carry out a range of basis trading methods. Calendar spreads, future rolls, and funding rate farming are a few common delta one spread tactics that institutional traders might use in an orderbook arrangement.

The on-demand OKX Liquid Marketplace offers scale-able futures spreads, big options block trades, spot OTC, and access to deep institutional liquidity for a variety of crypto trading methods. The Liquid Marketplace’s trading volume in the first three months of 2023 exceeded $1 billion, according to an announcement made by OKX in April.

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Filed under: Bitcoin - @ June 27, 2023 10:17 am