FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading. The platform is owned by FTX Trading LTD, a company based in Antigua and Barbuda. Launched in early 2019, the project has shown significant growth in a matter of a few months.
Sam Bankman-Fried, the founder of the project, has deep experience in trading derivatives as he started out his career as a trader on Jane Street Capital’s international ETF desk. Apart from trading various ETFs, futures, currencies, and equities, he has also designed their automated OTC trading system. He turned his attention towards cryptocurrencies during Bitcoin’s bullrun in late 2017. The co-founder of the project, Gary Wong, has another successful project Alameda Research behind his shoulders. This project served as an incubator for his new brainchild later providing the new platform with industry-leading order books from the very start.
Unlike old and established derivatives trading platforms that are not so eager to implement new trends, FTX offers its users a wide variety of new derivative products. Apart from traditional BTC and ETH perpetual contracts, its users can also trade leveraged tokens (up to 101x) and a variety of indices.
At the time of writing, the platform offers 3 key indices. The altcoin index covers 9 altcoins with the high market capitalization (Bitcoin Cash, EOS, Ether, Litecoin, XRP, and a few others). The midcap index tracks 24 coins with the medium-market cap using a weighted average of their prices. Finally, there’s a shitcoin index that tracks 58 low market cap coins. All these indices serve as a great risk-management tool as they allow traders to spread their risks across a basket of coins instead of relying all their funds on one or two assets.
The leveraged ERC-20 tokens provide users with an automated way of making money on leverage. For every asset performed on the platform, there are 3 key tokens - BULL, BEAR, and HEDGE. Each of these assets is traded with the leverage corresponding to their concept. The platform is fueled by its native token FTX which can also be used as margin.
Additionally, FTX has partnered with some stable coin providers such as USDCoin, TrustUSD, and PAXOS. Users can deposit these coins to the platform along with other cryptocurrencies and use them for margin trading.Read More