Deribit to Launch Futures Contracts for Bitcoin Volatility Trading

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Arnab Shome
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Deribit, a leading crypto options trading platform, will launch futures contracts to facilitate Bitcoin volatility trading, the exchange has announced. It will be the first such crypto derivative instrument in the market and will be priced, margined and settled in USDC.

BTC DVOL futures will be based on the Deribit Bitcoin Volatility Index (DVOL), a parameter that measures the volatility of the cryptocurrency across markets. It is calculated by implicit volatility

Volatility

In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of the fluctuation of an instrument; a highly volatile security equates to large fluctuations in price, and a low volatility security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to help them develop trading systems. Merchants

In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of the fluctuation of an instrument; a highly volatile security equates to large fluctuations in price, and a low volatility security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to help them develop trading systems. Merchants
Read this Term with option selection expires and strikes on Deribit and provides a 30-day outlook on expected annual volatility.

The new contract will debut with one expiration and will be available on Deribit starting March 27, 2023. Additionally, the exchange plans to launch additional expirations in the coming months.

“DVOL can indicate changes in the health and direction of the Bitcoin

Bitcoin

While some may still be wondering what Bitcoin is, who created Bitcoin, or how Bitcoin works, one thing is certain: Bitcoin has changed the world. No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology. In fact, we’ve come a long way since Florida resident Laszlo Hanyecz made the first official BTC business transaction with an actual company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s. One could now argue that

While some may still be wondering what Bitcoin is, who created Bitcoin, or how Bitcoin works, one thing is certain: Bitcoin has changed the world. No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology. In fact, we’ve come a long way since Florida resident Laszlo Hanyecz made the first official BTC business transaction with an actual company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s. One could now argue that
Read this Term market, making it an essential tool for traders looking to stay ahead of the curve and an excellent baseline for volatile trading,” said Deribit CEO John Jansen.

Deribit is among the top cryptocurrency derivatives exchanges that have handled more than $1.4 billion in derivatives in the last 24 hours, according to Coinmarketcap. When it comes to cryptocurrencies, the platform dominates, capturing most of the Bitcoin and Ether options markets. It also offers crypto futures instruments.

“BTC DVOL futures is an exciting new product that will help traders hedge their positions and take advantage of market volatility while serving as a tool for additional risk management, alpha generation and portfolio diversification,” Jansen added. “This product is particularly useful for those who want exposure to volatility but do not want to trade complex options strategies.”

Timing the Market

Deribit is launching the new product as the cryptocurrency market gained strong upward momentum following a crisis in the US banking industry. Additionally, two US banks, Signature Bank and Silicon Valley Bank, submitted to a Federal Deposit Insurance Corporation subjudice, while another, Silvergate Bank, declared voluntary liquidation.

Bitcoin has gained about 36 percent in the last seven days and is trading above $27,000 at press time. Other major cryptocurrencies, including Ether, BNB, Polygon, and many others, also gained similarly in the recent bull.

“Having DVOL futures available makes it even more manageable,” said Greg Magadini, the Director of Derivatives at Amberdata. “Just as traditional PMs will sell S&P500 futures to hedge their stocks, Deribit traders can now granularly manage their Vega exposure by trading liquid DVOL futures against their options book. Speculators can also have pure Vega bets by trading DVOL futures while avoiding the complexities of path dependence.”

Deribit, a leading crypto options trading platform, will launch futures contracts to facilitate Bitcoin volatility trading, the exchange has announced. It will be the first such crypto derivative instrument in the market and will be priced, margined and settled in USDC.

BTC DVOL futures will be based on the Deribit Bitcoin Volatility Index (DVOL), a parameter that measures the volatility of the cryptocurrency across markets. It is calculated by implicit volatility

Volatility

In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of the fluctuation of an instrument; a highly volatile security equates to large fluctuations in price, and a low volatility security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to help them develop trading systems. Merchants

In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of the fluctuation of an instrument; a highly volatile security equates to large fluctuations in price, and a low volatility security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to help them develop trading systems. Merchants
Read this Term with option selection expires and strikes on Deribit and provides a 30-day outlook on expected annual volatility.

The new contract will debut with one expiration and will be available on Deribit starting March 27, 2023. Additionally, the exchange plans to launch additional expirations in the coming months.

“DVOL can indicate changes in the health and direction of the Bitcoin

Bitcoin

While some may still be wondering what Bitcoin is, who created Bitcoin, or how Bitcoin works, one thing is certain: Bitcoin has changed the world. No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology. In fact, we’ve come a long way since Florida resident Laszlo Hanyecz made the first official BTC business transaction with an actual company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s. One could now argue that

While some may still be wondering what Bitcoin is, who created Bitcoin, or how Bitcoin works, one thing is certain: Bitcoin has changed the world. No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology. In fact, we’ve come a long way since Florida resident Laszlo Hanyecz made the first official BTC business transaction with an actual company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s. One could now argue that
Read this Term market, making it an essential tool for traders looking to stay ahead of the curve and an excellent baseline for volatile trading,” said Deribit CEO John Jansen.

Deribit is among the top cryptocurrency derivatives exchanges that have handled more than $1.4 billion in derivatives in the last 24 hours, according to Coinmarketcap. When it comes to cryptocurrencies, the platform dominates, capturing most of the Bitcoin and Ether options markets. It also offers crypto futures instruments.

“BTC DVOL futures is an exciting new product that will help traders hedge their positions and take advantage of market volatility while serving as a tool for additional risk management, alpha generation and portfolio diversification,” Jansen added. “This product is particularly useful for those who want exposure to volatility but do not want to trade complex options strategies.”

Timing the Market

Deribit is launching the new product as the cryptocurrency market gained strong upward momentum following a crisis in the US banking industry. Additionally, two US banks, Signature Bank and Silicon Valley Bank, submitted to a Federal Deposit Insurance Corporation subjudice, while another, Silvergate Bank, declared voluntary liquidation.

Bitcoin has gained about 36 percent in the last seven days and is trading above $27,000 at press time. Other major cryptocurrencies, including Ether, BNB, Polygon, and many others, also gained similarly in the recent bull.

“Having DVOL futures available makes it even more manageable,” said Greg Magadini, the Director of Derivatives at Amberdata. “Just as traditional PMs will sell S&P500 futures to hedge their stocks, Deribit traders can now granularly manage their Vega exposure by trading liquid DVOL futures against their options book. Speculators can also have pure Vega bets by trading DVOL futures while avoiding the complexities of path dependence.”



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