Derivatives are an important class of trading instruments that is central to today’s financial and trade markets. Derivatives offer various types of risk protection and allow innovative trading and investment strategies. As of now, if we compare the derivatives market of crypto assets to other financial instruments, it’s marginal in terms of volume and underdeveloped in terms of tradable instruments. However, the opportunities in terms of enhancing the trading volume of crypto assets’ derivatives and creating new trading instruments are huge. Product and technology innovation when furthered in derivatives product will help crypto trading volume increase in manifolds and put the crypto market onto the mainstream global stage.

While innovative entrepreneurs and thinkers are driving the crypto economy towards a new high with their hard work and innovation, we at IDAP are focused on giving the crypto economy a complete makeover by introducing the complete derivatives market for trading and investing which will be instrumental in crypto market’s development. IDAP is focused towards increasing operational efficiency, transparency and risk mitigation through its automated clearing and settlement module and advanced risk management system that would help the crypto derivatives market to function effectively.

Given the crypto market’s nature of being active 24X7, users can trade around the clock through our innovative desktop trading application, which will be crystalized after taking into consideration every single aspect of trading conditions and methodology. Any user can make use of crypto derivatives product that will offer exposure to underlying crypto assets across all cryptocurrencies and tokens. Our product offerings will cater to all type of traders and investors. It will enable trading of future market price of any asset, wherein one aspect will be elimination of future uncertainty by applying hedging strategies and other will be trading and investing without actually buying or holding the underlying asset with minimal upfront investment.

In initial phase expanded futures market will be available for trading and options market will be introduced subsequently. Our futures market offerings include:

Futures Outright trading, where a user will be able to trade on the future price of underlying assets. Calendar Spreads, through which an investor will have low risk exposure to the price differences between serial futures contract of the underlying asset. Butterfly Spreads, where an investor can bet on the whole curve rather than the price direction of the underlying assets.

Phase I product offerings of idap.io will include derivatives trading products of BTC, ETH along with top 3 coins opted by IDAP users through voting system. Initially there will be three monthly sequential futures contract of each coin including exchange quoted calendar spreads and butterfly spreads. Subsequently more coins and more monthly contracts will be introduced as per market dynamics.

In next article we will talk about how IDAP will manage the liquidity and effective price levels of derivatives instruments.

Stay tuned!