OKX launches ‘Nitro Spreads’, enabling one-click basis trading.
OKX has launched “Nitro Spreads,” a feature on its over-the-counter (OTC) institutional liquid marketplace that allows traders to make complex basis trades in one-click.
Basis trading is when traders buy and sell an asset at two different market prices to try and make a profit. For example, buying an asset on a spot market and then selling it on a futures market. OKX’s Nitro Spread feature makes this type of trade easy by allowing traders to do it in just one click. The feature can be used for any combination of spot, perpetual and futures contracts listed on the exchange.
“The current market is complex and institutions want reliability, predictable returns and genuine innovation when they choose a trading venue,” said Lennix Lai, global chief commercial officer at OKX. “This is especially true in basis trading, where precision and flawless execution are important,” he added.
Nitro Spread is one of the only basis trading tools in the cryptocurrency industry that uses a central order book to execute two parts of the trade. Before making the trade, traders can choose a guaranteed spread to reduce price slippage.
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“Traders can place resting orders with a fixed spread – they do not need to worry about immediate execution,” said Lai. “If the actual spread moves against their chosen spread, their orders will remain passive and not be executed.”
“Spread order book prices are generally more stable than outright books as the instruments are delta neutral,” he continued. “We are working with a variety of liquidity providers to ensure that our users can trade effectively and take advantage of spreads.”
Traders can also execute popular delta one spread strategies like calendar spreads, future rolls and funding rate farming, all in order book format, said the press release.
The exchange’s Nitro Spreads product launched as a preview in May.
Edited by Stephen Alpher.