OKex to Refut BTC Futures Price Manipulation Rumours

OKex cryptocurrency exchange issued big statement regarding recent events and rumours
04 April 2018   1223

Representatives of the Hong Kong exchange OKEx said that the information spread on the Internet that the site is involved in manipulating prices in the bitcoin futures market is untrue.

We, as a trading platform, do not make profit from the price volatility, but generate income from trading fees. We have not reason to, and have never and will not, manipulate the prices of any of our market.
 

OKex Team

It is also noted that the images that appeared in social networks and allegedly evidence of manipulation are fake. In addition, the exchange added that the site will have new rules that should prevent the repetition of the situation on March 30:

At 5:00-6:30 on Mar 30, 2018 (Hong Kong Time), the price of BTC quarterly futures contract was manipulated by a group of people, making it fall significantly below the BTC index. To protect the interests of our customers and to eliminate the adverse effects induced, we decided to rollback the futures trading data (according to OKEx Futures Trading User Agreement 6.2). In light of this problem, new "Price limit rules" were immediately launched to prevent similar incidents from occurring. We deeply apologize for the inconvenience caused.
 

OKex Team

On March 31, a Chinese trader, who opened a major position on bitcoin futures, threatened to commit suicide in front of the OKEx office, claiming that the liquidation of his position was done wrongly.

OKEx to Launch BTC Options Trading for Some Clients

The company says that option trading will allow users to implement a variety of strategies; the customers were choosen initially
26 December 2019   216

This Thursday, the OKEx cryptocurrency exchange announced the launch of bitcoin options on its main platform after the successful completion of the trading period in simulation mode.

The tool is currently available to a limited number of customers who have received invitations. Its full launch will take place on January 9, 2020.

The company says that option trading will allow users to implement a variety of strategies, from simplified to advanced, and present a complete update of the platform architecture, which is characterized by increased speed and reliability.

The OKEx Options platform will use an enhanced anti-manipulation mechanism based on the Black-Scholes pricing model. This model implies that if the underlying asset is traded on the market, then the option price on it is implicitly set by the market itself.

Unlike futures, where both parties are required to fulfill the terms of the contract, the option gives its buyer the right, but not the obligation, to buy or sell the asset at a predetermined price at a certain point in the future. In this case, the option seller cannot refuse to fulfill the terms of the contract. He compensates for additional risks with the premium that the buyer gives him when concluding the contract.

Options are a unique instrument that enables traders to manage, price and hedge the volatility of crypto assets [...] to take advantage of more than just market direction. We welcome clients from different segments, especially from our institutional clients, who have shown the fastest-growing demand in derivatives trading, especially on futures and perpetual swaps.

 

Lennix Lai

Financial market director of OKEx

 

He also promised that in 2020 OKEx will introduce new products and technological achievements to its customers.

In addition to options, OKEx currently supports leverage on the spot market, as well as futures and perpetual contracts.