TLDR
- Deribit has introduced USDC-settled options trading for Avalanche and Tron.
- The new options contracts are cash-settled and fully based on USDC.
- AVAX options have a contract size of 100 AVAX, while TRX options are for 10,000 TRX.
- Traders can use these options for hedging and generating premium income.
- Deribit does not accept AVAX or TRX deposits for margin offset in these contracts.
Deribit has expanded its derivatives offerings by introducing USDC-settled options trading for Avalanche (AVAX) and Tron (TRX). These new contracts are available to users from eligible jurisdictions and are fully settled in USDC. This alignment with USDC aims to streamline the trading process for these options and perpetual products.
Deribit Introduces Cash-Settled AVAX and TRX Contracts
Deribit now offers cash-settled AVAX options with a contract size of 100 AVAX per contract. The contracts give traders the flexibility to buy or sell AVAX at a predetermined price before expiration. These options allow users to hedge their spot positions, particularly in volatile market conditions.
The AVAX options provide two primary choices: call options and put options. A call option gives the right to buy AVAX at a specific price, while a put option offers the right to sell it. As with other options contracts on Deribit, these are cash-settled, meaning no physical AVAX tokens are exchanged at expiration.
Alongside AVAX options, Deribit has also introduced TRX options, which have a contract size of 10,000 TRX per contract. Similar to AVAX, these contracts are also cash-settled in USDC, which simplifies settlement for traders. The TRX options provide traders with the ability to execute call or put options, depending on their market strategy.
TRX traders can use these options for various strategies, including hedging and generating premium income. For example, a trader holding TRX can buy a put option to protect against downside risk. With cash settlement in USDC, the process remains efficient and straightforward, providing traders with predictable exposure to TRX’s price movements.
No AVAX or TRX Deposits for Margin Offset
Currently, Deribit does not accept AVAX or TRX deposits as offset currencies for margin requirements. Unlike some of its other options markets, such as those for SOL and XRP, this means that traders cannot use AVAX or TRX balances to offset margin when trading these new options. All settlements will be based on USDC, providing a consistent settlement mechanism across both AVAX and TRX options.
This shift reflects Deribit’s approach to simplifying the settlement process for these new products. By using USDC, the exchange ensures that traders can easily manage their exposure and risk without needing to worry about handling multiple tokens for margin or settlement.
Deribit’s introduction of USDC-settled options for AVAX and TRX strengthens its derivatives offerings. These new contracts offer traders more opportunities to hedge, speculate, and manage risk in the rapidly evolving cryptocurrency market. The fully cash-settled options in USDC align with Deribit’s ongoing commitment to providing innovative and efficient trading solutions for its users.
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