OKCoin to Offer Futures Trading for Traders from its Platform

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Now, traders would be able to do future trading at Chinese exchange OKCoin as the company has announced that it is going to add this feature to the website soon. Thus, offering one of the most popular trading options for traders, OKCoin is all set to become one of the first major exchanges in the world to offer users the chance to trade futures denominated in Bitcoin.

Futures Trading, a form of investment which involves speculating on the price of a commodity going up or down in the future, has become popular among traders and any such offer from OKCoin was expected as the company saw bright prospects in it. The company says that its futures trading will be in beta for the next two weeks before going live.

The Bitcoin exchange says that it will keep the futures trading platform in Beta phase till it partly solves Bitcoin’s price volatility problem and reduces risks by allowing the digital currency earners to ‘lock in’ a future price. According to the company the more advanced traders can use futures to utilize higher leverage opportunities for price speculation.

It further informs that trading of derivatives like futures also serves to move volatility away from the underlying asset and ultimately causes prices to become more predictable overall. Thus, bringing up the professional trading tools OKCoin is trying to carve a niche for its sophisticated trading services.

Professional Future Trading Experience

In his statement founder and CEO of OKCoin, Star Xu, opined that this is a professional trading tool for digital currency investors to help them build the Bitcoin trading platform of the future. He said that the launch of Bitcoin futures trading capabilities builds on the algorithmic trading tools it pioneered and launched on the platform last month.

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He suggested that as his company has been receiving a favorable response from institutional and individual investors he is helping to make participation in Bitcoin a safer and stable process. According to him the ability to trade futures will further cement our position as one of the world’s leading Bitcoin exchanges.

Similar views were expressed by OKCoin’s chief technology officer Changpeng Zhao according to whom OKCoin would ascertain it was gathering accurate pricing data with a US dollar index based upon prices from 10 different Bitcoin exchanges. Thus, it wants not just reduce the risk in Bitcoin investment but also generate trust among investors.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com