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HomePress ReleaseWhat’s so Special about New Derivative Non-Standardized Option in AOFEX?

What’s so Special about New Derivative Non-Standardized Option in AOFEX?


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AOFEX is convening their digital asset exchange and trading platform launching on 25th April, and there will be a brand new derivative called Non-Standardized Option.

According to known information, NSO is a financial tool that helps investors hedging dramatics change in crypto market, which is completely different from the other derivatives in existing exchange platforms.

One of the most common tools is spot trading, trading with market price. Yield is received when the selling price is higher than the purchasing price, and vice versa. The drawbacks of spot trading, however, is with high systematic risks because strong liquidation of asset is required, and the generating model is unidirectional, not to mention the tremendous change on price of digital currency.

Leverage trading is popular among exchanges nowadays. Most investors are attracted by the possibility of earning high margin with small amount of investment. Normally investors take long or short positions to generate the profit in change, but risks increase exponentially with fluctuation because it exaggerates the influence of change in cryptos.

Similar to leverage trading, profit of contract deal is generated by going long or short. Normally contract deal has 10, 20 or even 100 times of leverage. Contract deal has unsystematic risks such as misoperation, emotional breakdown and undisciplined trading.

Three derivatives above all have their advantages and disadvantages.

Non-Standardized Option is a solution of the enhancement of the advantageous derivatives, which will be ultimately launching on AOFEX.

NSO could hedge risks of strong fluctuation on one digital currency with variety of digital currencies and multiplicity of time sessions; with manageable risks, know the profit in advance with unique technology in revenue model; Furthermore, the in time close out mechanism minimizes users’ lost and avoids unsystematic risks.

Factors of global market decide the trading margin of NSO; The rate of ccrypto is exchange AOFEX and four other highest volume exchanges. Calculation method is the weighted average of AOFEX and four other highest volume exchanges’ trading volume. In addition, trading data is non-tampering, which is secured and bound to each other using cryptographic principles.

NSO not only has the advantage of nonlinear structure of profit and loss in portfolio investment in financial option trading, but also non-tampering, because data is secured and bound to each other using cryptographic principles.

AOFEX provides professional risk control and management strategy in high-risk investment market for investors. Specific details will disclose on 25th during the official launch of AOFEX.


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