Derivatives Trading With FTX Exchange
FTX exchange was developed by Alameda Research. It was established in October 2017 by professional trader Sam Bankman-Fried and programmer Gary Wang. Alameda manages the digital assets of companies and individual investors. The platform manages a portfolio of digital assets worth $100 million. Alameda is also engaged in professional trading of digital assets with a daily turnover ranging from $600 million to $1.5 billion.
The same founders of Alameda Research are behind the launch of the FTX platform. The exchange officially appeared in 2018. From a legal perspective, the service is owned by FTX Trading LTD, registered on Antigua and Barbuda islands. In July 2019, the exchange launched its own token and attracted $8 million from institutional investors, and in December 2019, Binance acquired a large part of FTX. In February 2020, FTX sold 125 million FTT tokens.
The exchange is currently offering spot and futures markets, options, leveraged tokens, volatility tokens, special tokens, and the OTC platform.
- Spot — 30 trading pairs for USD, USDT, BTC, and BRL are available on the spot platform. The most liquid pair is BTC/USD, with its trading volume of $435 million in the month of May.
- Futures — The platform features more than 50 futures contracts. Monthly, quarterly, and termless contracts are available
- Leveraged tokens — FTX exchange is the originator of leveraged tokens. They were the first ones to introduce the leveraged trading mechanism in the spot market. FTX is also responsible for providing these tokens. In total, about 100 tokens with -3, -1, 0.5, 1, and 3 leverage are presented on the exchange.
- Volatility tokens. These are contracts that settle in the absolute change in the price of a coin over time. Time periods can be daily, weekly, or quarterly.
- Special tokens. Special tokens include cryptocurrency indexes (similar to ETF), 2020 US presidential election tokens, hashrate values, and tokens pegged to the price of WTI oil.
The standard commission is 0.02% for the maker and 0.07% for the taker. These values can be reduced by increasing trading volume.
FTX offers referral and VIP programs as well. In order to become a VIP member, one’s trading volume must exceed $100 million.
1% and 4% mean that the trader’s 30-day trading volume should be 1% or 4% of the total trading volume on FTX. Your volume must meet any of the requirements (in USD or %) in order to qualify for the VIP program.
When users register using your referral link, you receive 30% of their trading commissions, and in turn, they will receive a 5% discount on commissions on all transactions.
For FTT token holders, an additional discount on commissions is provided
Replenishing the account does not take up any fees. There are creation and settlement fees of 0.10% and a daily management fee of 0.03% for leveraged tokens. Using leverage greater than 50x increases trading commissions by 0.02%, and using 100x leverage or higher — by 0.03%. The insurance fund acts as the beneficiary of the additional fees.
FTT is the foundation of the growing FTX ecosystem
- FTT token is traded on FTX, Binance, Bitfinex, Huobi, and other exchanges, taking the 34th place in the CoinMarketCap rating.
- FTX purchases and burns FTT tokens in the amount equal to 1/3 of all fees collected by the exchange.
- FTT token can be used as collateral on the FTX exchange.
- FTT accrues socialized gains from the FTX Insurance Fund.
- FTT holders receive discounts on commissions.
A total of 350,000,000 FTT was issued and is now being bought back and burned until only half of the total supply remains.
There are three levels of identity verification on the platform. For the first level, providing an email and a country of residence is enough. In this case, the daily amount of funds available for withdrawal will be equal to 1000 USD. The second level requires a provision of certain documents, but reaching this level means that there will be no withdrawal limits. For the third level, a bank statement is required, which would allow the user to utilize the OTC platform.
FTX is a large derivatives platform with unique tools that will suit both beginners and experienced users. It may be able to compete with such crypto giants as Binance and Bitmex in the future. And as of May 2020, there is an opportunity to trade on FTX using 3Commas tools.