FTX — An Innovative Virtual Currency Derivatives Exchange｜Move Bidirectional Contract Introduction

In mid-2019, the market maker team of Alameda Research, who has been in the currency circle for many years, announced the establishment of the FTX virtual currency derivatives exchange. The author will introduce their background, interface and innovative products.

FTX is a virtual currency derivatives exchange founded by the Alameda Research team . Less than half a year after its establishment, FTX received strategic investment from Binance in December 2019.

In addition, FTX has accumulated many innovative investment products in less than a year since its establishment, such as Move contract, platform currency contract, air currency contract, etc. This article first introduces the most distinctive Move contract, and other contents The author will introduce them to you one by one in the follow-up.

Move Bitcoin Bidirectional Volatility Contract

The Move contract is a two-way contract whose value is based on the price fluctuation of "Bitcoin". In simple terms, the compensation of the Move contract depends on the fluctuation of the Bitcoin price, rather than the rise or fall of the price.

For example: Suppose a scenario where the price of Bitcoin is $8,750 when the Move contract opens at 8:00 a.m., and then at 3:00 p.m. that day, the Indian government announced the lifting of the ban on virtual currencies, and investors in the currency circle predict the price of Bitcoin There will be a big change, and the price of Bitcoin will be smashed to $ 9,100.

At this time, we can see that Bitcoin has a gap of $350 from $8,750 at 8:00 in the morning (9,100-8,750 = 350), and the price of the Move contract will also increase by about $350 .

What if the price of Bitcoin falls? If instead of a $350 rise, the price fell $200 today, the Move price would be up about $200 at this point.

Why does the Move contract rise regardless of whether the price of Bitcoin rises or falls? This is because Move is also commonly known as a two-way volatility contract . This kind of contract does not look at the rise or fall of Bitcoin price, but sees how much the price of Bitcoin deviates from the market price during the time period.

When is this contract suitable to play? It is suitable for when you feel that the price of Bitcoin will fluctuate greatly today. At this time, you should go long in the Move contract; otherwise, when will the Move contract not rise? That is to say, when there is no fluctuation in the price of Bitcoin (or when it is not far enough away from the price or when it has consolidated in a price range for a long time), you are suitable for shorting the Move contract.

BTW, through observation, it can be found that if there is no big fluctuation in the Move contract throughout the day, the price of the Move contract will be lower and lower (the time value is getting lower and lower) as the time passes closer to 8 o'clock tomorrow morning.

Move is full of fun, right? Now you also understand why it is called a two-way contract, because it looks at the difference between the bitcoin price and the opening price, so there is no need to go in either direction (ie, no long or short perpetual contracts).

The author is very profitable in the Move contract, and this is an innovative product that I am optimistic about the FTX exchange, so I am very happy to share it with you. If you think this article is helpful to you, and you have not used the FTX exchange for trading before, you are welcome to use the author's Golden FTX referral link to register, you and I can both get a 5% transaction fee back:

https://ftx.com/#a=golden007