Crypto Exchange BIT Unveils Options Market for Cardano's ADA Token
BIT's unified margin system allows ADA holders to trade options at a discount.
Cryptocurrency derivatives exchange BIT on Wednesday rolled out options tied to Cardano's ADA token while promising to add more alternative cryptocurrencies (altcoins) in coming months.
The ADA options are live in the platform today and are denominated and settled in U.S. dollars, BIT said in a press release shared with CoinDesk. One ADA options contract represents 1 ADA, the exchange's spokesperson said.
ADA, the native token of Ethereum competitor Cardano, has a market value of $9.73 billion and is the world's eighth-largest cryptocurrency at press time. Alternative cryptocurrencies tend to be more volatile than the market leaders, bitcoin (BTC) and ether (ETH).
Options are derivative contracts that give the purchaser the right to buy or sell an underlying asset at a certain price on or before a specific date. A call option gives the right to buy the asset, while a put option gives the right to sell.
The availability of ADA options means traders can now use the options to hedge their portfolio risks or bet on a volatility explosion, as they with bitcoin and ether options.
With BIT's unified margin system, traders can use their coin holding as collateral to trade ADA options at a discount.
"BIT's unified margin system allows users to utilize all assets in their accounts as trading collateral with a haircut ratio. ADA's haircut ratio is now 15%, meaning users can use their ADA as collateral and trade options at a 15% discount," BIT said in the release.
The offering, launched in collaboration with strategic partner Darley Technologies and market maker DWF Labs, expands BIT's existing suite of options, which include those tied to the decentralized layer 1 blockchain, The Open Network's TON coin and bitcoin and ether futures and options.
BIT said it plans to offer options to other altcoins, including meme coins, in the future.
The global crypto options market, led by Panama-based Deribit exchange, is already worth billions of dollars, with most of the activity concentrated in bitcoin and ether contracts, and is known to influence the spo t prices of the top cryptocurrencies.
Edited by Sheldon Reback.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
4 reasons why Solana (SOL) price could rally back to $180
VIPBitget VIP Weekly Research Insights
Over the past few weeks, BTC has repeatedly tested the $100,000 resistance level, briefly breaking through multiple times before failing to hold, resulting in sharp declines Altcoins have entered a technical bear market, though SOL has shown resilience during both downturns and rebounds. However, the trading frenzy surrounding Solana-based memecoins has cooled, while discussions of institutional unlocking have gained traction on social media. On the night of March 2, Trump announced plans to establish a strategic crypto reserve, explicitly mentioning BTC, ETH, XRP, SOL, and ADA. This statement briefly reignited market sentiment amid oversold conditions, triggering a sharp crypto rebound. However, macroeconomic conditions remain largely unchanged, and liquidity recovery is a gradual process. The rally sparked by Trump's comments quickly faded, suggesting the market may still face further downsides. The following recommendations highlight projects worth monitoring in the current cycle, though they may not yet have reached an optimal entry point.
Texas Senate Passes Bitcoin Reserve Bill With 80% Votes in Favor
Texas' Bitcoin Reserve bill cleared the Senate with strong bipartisan support. Without mandatory Bitcoin purchases, it now moves to the House for a final vote.
El Salvador’s president says the country “won’t stop” buying Bitcoin
Trending news
MoreCrypto prices
More
