Synthetix, crypto-backed synthetic asset platform, has announced adding new features, including derivatives trading.

In a blog post, the exchange unveiled its plans to trade binary options in the third quarter of 2020. Binary options are a digital financial product where the investor can either get a fixed monetary amount or nothing.

“Synthetic binary options will likely generate significant trading volume as they will be able to leverage the liquidity of the debt pool, allowing a trader to take a large position almost immediately without needing to find a counterparty,” the company added in the blog.

Synthetix offers new features

The Ethereum-based platform supports other assets such as equities and hedge securities. It also intends to offer leveraged trading on tokens.

“Leveraged trading drives a significant amount of volume on crypto exchanges, and while synthetic futures will compete directly with centralized futures platforms, there is a lot of value in supporting tokenized leverage. We will initially test leveraged tokens using fiat currencies like the Euro and AUD. We expect to support 5x and 10x BTC tokens both long and short soon after we launch fiat leverage tokens. Following the rollout of BTC we will expand the offering to other large cap crypto tokens.”

In 2020, the exchange announced its plans to introduce several features, Ether/DAI/BTC collateral, trading incentives.

Synthetix said it would support these futures:

“Synthetic futures trading will be much more flexible and will support any asset on sX. This opens up the possibility for leveraged trading on many different asset classes simultaneously, including cryptoassets, equities, and commodities. We expect leverage will initially be capped at 10-20x…”

Synthetix is not the first company that is offering derivatives trading. Even before India’s Supreme Court lifted a ban on banks dealing with crypto firms, the Unocoin platform had planned to start trading derivatives options.

Earlier, Cryptolydian reported that the derivatives trading market is one the major players in the crypto trading community, with its monthly traded volumes reaching hundreds of billion dollars.

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