FTX is a young dynamic trading exchange for trading cryptos (BTC, ETH etc), securities (Amazon, Tesla etc), indices (S&P500) and derivatives (BTC Futures, silver futures etc). FTX is among the most innovative crypto finance platforms with many different products and opportunities to enter the crypto markets.
Hence, on FTX you can trade in Bitcoin futures contracts as well as buy shares of Tesla with Bitcoin. FTX innovates and integrates the latest technology to further develop into a next generation digital asset and derivatives exchange.
Introduction to FTX
In English, this type of exchange is often referred to as a cryptocurrency derivatives exchange. FTX was developed by and for professional traders. However, its intuitive trading platform is suitable for everyone and not limited to derivatives. Beginners can easily trade cryptos, crypto derivatives and also securities (Amazon, Facebook etc.) with FTX. The FTX platform was started through Alameda Research for achieving one of the best order books in the market. The trading platform has an advanced liquidation monitor and a backstop liquidity provider system to provide a three-step solution for handling margin calls and avoiding clawbacks. Furthermore, it allows you to trade all derivatives with only one margin wallet. The FTX-exchange is further a specialist in offering Leveraged Futures tokens and DeFi futures contracts!
The unique offering of the FTX platform:
FTX has revolving futures contracts and futures contracts that expire quarterly. They offer future contracts not only for most liquid crypto currencies like Bitcoin, but also to lesser known crypto currencies like BNB and a multitude of defi-tokens.
FTX Index Futures
Next, what is also unique about the FTX trading platform is that Index Futures are offered for the large-cap coins and exchange tokens, among others. The following crypto currency Index Futures are available:
ALT: a futures contract over an index of the most important and liquid altcoins.
MID: a futures contract over an index of mid-cap coins such as ADA, NEO, ONT, DOGE, and BTT!
SHIT: a futures contract over some low-cap crypto coins (shitcoins)!
EXCH: a futures contract over an index of major exchange tokens!
DRGN: a futures contract of an index of major Chinese projects.
The FTT – FTX token
The FTT is the exchange token of FTX. It socializes profits across token holders of the insurance fund on FTX. Further, FTX buys and burns the FTT tokens in circulation equal to 33% of all fees generated on FTX markets. FTT holders are entitled to a rate discount and closer OTC spreads. Furthermore, the FTT is usable as collateral on FTX. If you want to be part of the FTX community and use the trading platform, you might consider buying the FTT token.
For more information: FTX Trading Platform.
FTX Leveraged Tokens
FTX also has leveraged tokens (leveraged tokens), the FTX Bull and Bear tokens, which help traders better manage levers automatically and avoid liquidations. Risks and required collateral no longer need to be managed in detail by a trader. They provide further trading convenience and require no collateral. For example, FTX has Leveraged Tokens for the DeFi market where you can instantly take a SHORT or LONG (up to 3X Leverage) position with no margin.
FTX Future Move Contracts
FTX is the first trading platform to offer MOVE futures contracts. These unique contracts are settled based on the absolute change in the price of a crypto currency without fixing the direction over a specified time period. FTX trades MOVE futures contracts daily, weekly, and quarterly. Below in the video you can see Director Sam talking about the Move contracts:
FTX – Binance partnership
FTX has a unique partnership with Binance. As a result, FTX has a professional BNB spot and futures market. FTX has also added the Binance stablecoin BUSD. BNB can also be used as collateral on FTX. Moreover, Alameda Research works with Binance for mutually provide good liquidity across all trading products and brands such as Binance.com, Binance OTC, and Binance.US.
FTX further has other well known cooperation partners including: Bitfinex, Coingecko, Consensus, and of course the aforementioned Binance. Another special collaboration is with the Serum project being built at Solana.
What are the costs on the FTX trading platform?
Below in the chart you can see a cost overview. There are indeed hardly any costs associated with trading futures contracts on the FTX trading platform for crypto derivatives:
Conclusion on FTX
The FTX trading platform for crypto derivatives may be young, but it is very professionally set up with many innovative products and features. FTX will easily compete with established players such as ByBit and Bitmex. The partnership with Binance is very promising and will provide the trading platform with much needed liquidity. Furthermore, FTX offers its users to trade in popular stocks and indexes. FTX is concrete proof that more and more crypto exchanges will develop into a one-stop shop for bitcoin, cryptocurrency, currencies, securities, and tokenized assets.
FTX’s trading platform also features a proprietary FTT token that can provide platform users with various benefits, such as obtaining lower commissions, discounts, and socialized profit sharing through the insurance fund. We will keep an eye on the developments.