OKX recently introduced “Nitro Spreads,” a new feature aimed at enhancing its over-the-counter (OTC) institutional liquid marketplace. By allowing traders to make complex basis trades in a single click, this innovative feature offers financial enthusiasts a more efficient and convenient way to trade.
Basis trading is the practice of capitalizing on the difference in asset prices between two separate markets, like spot and futures markets. The one-click automation of this trading method provided by Nitro Spreads presents significant benefits for users. The feature can be applied to any combination of spot, perpetual, and futures contracts available on the exchange, greatly expanding its versatility and appeal.
In today’s intricate market environment, confidence, predictable returns, and groundbreaking innovations are among the top factors considered by institutions in selecting a trading platform. Lennix Lai, the global chief commercial officer at OKX, shares this sentiment, emphasizing that basis trading requires precision and impeccable execution.
Nitro Spread stands as one of the few crypto basis trading tools where two legs of the trade are executed via a central order book, as stated in a press release. This unique capability allows traders to choose a guaranteed spread before executing the trade and minimizes price slippage.
Lai further explains that traders can place resting orders with a fixed spread, eliminating immediate execution concerns. Orders can remain passive and unexecuted if the actual spread is unfavorable compared to the trader’s chosen spread. As the instruments are delta neutral, spread order book prices tend to be more stable than those in outright books.
To optimize results and ensure that users can effectively take advantage of spreads, the company works alongside various liquidity providers. It’s worth noting that Nitro Spreads also supports popular delta one spread strategies, such as calendar spreads, future rolls, and funding rate farming. These are all available in order book format, offering traders even more options.
The Nitro Spreads product was first launched as a preview in May, showcasing its potential to revolutionize the world of crypto basis trading. As the market continues to evolve, solutions such as Nitro Spreads highlight the ongoing importance of innovation and adaptation in the industry, especially for institutions seeking reliable and profitable trading platforms.
Source: Coindesk
