Assets, Ethereum

Can You Trade Ethereum Options on LedgerX?

As of September 2019, LedgerX is the only CFTC-regulated exchange where investors can trade ether options. The firm offers both physically-settled and cash-settled options contracts. Physically-settled contracts settle in ether, while cash-settled contracts settle in U.

S. dollars.

LedgerX is a derivatives exchange and clearinghouse that offers cryptocurrency products to institutions and professional traders. It was the first company to receive CFTC approval for trading and clearing digital currency derivatives and is one of the few exchanges where investors can trade ether options.

The firm offers both physically-settled and cash-settled options contracts.S.

dollars. LedgerX CEO Paul Chou said that the firm plans to offer options on other digital currencies in the future, but for now ether is the only cryptocurrency available for trading.

The option contracts have maturities of one week, one month, three months, and one year. LedgerX charges a $1 per contract fee for options trades and has a minimum tick size of $0.

NOTE: WARNING: Trading Ethereum Options on LedgerX can be risky and may result in significant losses. You should always be aware of the risks associated with trading options, including the potential for unlimited losses. Before engaging in any option trading activities, you should carefully consider your own financial situation, risk tolerance, and investment objectives.

01 per ETH.

So far, LedgerX has seen good interest from institutional investors in its ether options products. Chou said that the firm has already seen “several seven-figure notional trades” from institutional investors.

He added that LedgerX is seeing more interest from hedge funds and family offices than it did when it first launched its bitcoin derivatives products in 2017.

While LedgerX is the only CFTC-regulated exchange offering ether options at the moment, other exchanges are likely to launch similar products in the future. The Chicago Mercantile Exchange (CME) plans to launch ether futures in early 2020, and Bakkt, a crypto platform owned by Intercontinental Exchange (ICE), plans to launch physically-settled bitcoin futures later this year.

These developments could make it easier for institutional investors to trade ether and other digital currencies with more traditional financial products.

In conclusion, yes you can trade Ethereum Options on LedgerX as it is the only CFTC-regulated exchange that offers this type of product currently.

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