What is FTX?

FTX is a cryptocurrency derivatives exchange that specializes in futures and options trading. Based in Hong Kong, the platform provides access to a suite of advanced trading tools and features, allowing traders to capitalize on their strategies and techniques. FTX only supports cryptocurrency products, with Bitcoin as its base currency.

FTX is a relatively new entrant to the crypto-trading scene having launched in 2019, but it quickly gained traction becoming one of the leading crypto-derivatives exchanges due to its user focus policies, suite of features and innovative products.

Investment Products

For those looking to capitalize on their strategies, FTX offers an extensive range of investment products. In addition to futures and options, FTX also offers leveraged tokens, a proprietary digital currency algorithm, and an advanced settlement infrastructure.

Futures allow traders to place speculative bets on the future direction of an asset. FTX offers futures contracts that enable traders to speculate on price changes without physically owning any of the underlying assets. These contracts can be leveraged with up to 100x leverage, allowing traders to magnify their gains or losses.

Options provide traders with a more sophisticated way to generate a return on their investments. Options give traders the right, but not the obligation, to purchase or sell an underlying asset at a predetermined strike price.

Leveraged tokens are a newer type of derivative product that enable traders to trade cryptocurrencies with leverage. FTX has a range of leveraged tokens that provide up to 3x leverage, allowing traders to magnify the change in value of their investment.

FTX also offers a proprietary digital currency algorithm, which allows traders to optimize their trading strategies. This algorithm accesses real-time market data and provides traders with the ideal buy-in and sell points for their positions.

Risk Protection

In addition to its impressive features, FTX also offers a range of risk protection systems and features. To ensure customer funds remain safe, FTX is regulated by the Hong Kong Securities and Futures Commission, and all customer funds are held in cold storage.

FTX offers an insurance fund, which acts to protect traders against excessive losses. The fund is funded by trading fees and is used to cover trader’s losses in the event of a large price move against them.

Conclusion

FTX is one of the leading cryptocurrency derivatives exchanges, providing an extensive suite of features and investment products. The platform offers both futures and options contracts that allow traders to capitalize on their strategies and risk protection systems in order to ensure customers remain safe.