Derivatives are financial instruments (contracts) whose values are derived from an underlying asset. When someone trades derivatives, they are buying/selling contracts that represent the actual assets. They are used primarily for hedging purposes, specifically when traders want to protect themselves from price fluctuations.
FTX is a cryptocurrency derivatives exchange built by traders, for traders. It strives to build a platform powerful enough for professional trading firms and intuitive enough for first-time users.
FTX Token (FTT) is the backbone of the FTX ecosystem. It has been carefully designed with incentive schemes to increase network effects and demand for FTT, and to decrease its circulating supply.
FTX Exchange is also quite well known for its detailed and transparent tutorials and explanations for trading.
What is FTX?
FTX is a crypto derivatives exchange that offers Futures, Leveraged Tokens and OTC.
Developed by Alameda Research (one of the largest crypto market makers and liquidity providers in the space), FTX is an exchange built BY traders, FOR traders.
The exchange claims to have built the best derivatives exchange by:
Addressing the largest pain points of top futures exchanges (system overloads, clawbacks, lack of liquidity and poorly designed products)
Innnovating new products to realize the evolving needs of the market
Rapidly implementing feedback from community
Some of the key features of the exchange include:
– More liquidity than OKEx and BitMEX (except for the Bitmex BTC perp)
– USD stablecoin settlement
– Achieve portfolio margining with a single USD stablecoin collateral wallet
– Comprehensive and clean API built for large volume accounts
– No restrictive rate limits
– Backstop Liquidity Provider program
– Leveraged ERC20 tokens that allow traders gain leveraged exposure on spot exchanges. These tokens simplify taking on leveraged positions by eliminating the risk of liquidations and the need to manage margin
– Currently, the exchange offers: 3x LONG, 1x SHORT, 3x SHORT leveraged tokens for BNB, USDT, BTC, ETH, EOS, XRP, TRX
– Offers some of the tightest spreads in the industry for crypto/crypto and crypto/fiat pairs