Gemini Reveals Plans to Open Derivatives Platform Abroad

According to reports, Gemini, the cryptocurrency exchange, revealed on Friday that it plans to open a derivatives platform abroad. The company stated that the first product of the new division, known as the Gemini Foundation, will be a perpetual Bitcoin (BTC) contract priced in Gemini dollars (GUSD). Next will be the Ethereum (ETH) perpetual contract linked to GUSD. Unlike traditional derivatives, perpetual contracts have no expiration date.

Gemini New Derivatives Platform Gemini Foundation Launches First BTC Perpetual Contract

Introduction

Gemini, the popular cryptocurrency exchange, has recently announced its plans to expand its offerings with the launch of a derivatives platform abroad. The new division, known as the Gemini Foundation, will offer a perpetual Bitcoin (BTC) contract priced in Gemini dollars (GUSD) as its first product, followed by an Ethereum (ETH) perpetual contract also linked to GUSD. This move is aimed at providing Gemini’s customers with a wider range of trading options and further establishing the exchange’s position as a top player in the cryptocurrency market.

What are Perpetual Contracts?

Perpetual contracts are a type of derivative that allows traders to bet on the future price of an asset without actually owning it. Unlike traditional derivatives, perpetual contracts have no expiration date, which means that traders can hold their positions as long as they like. This makes them an attractive option for traders who want to take a speculative position on an asset’s price movement without the constraints of traditional futures contracts.

Why is Gemini Launching a Derivatives Platform?

Gemini’s decision to launch a derivatives platform is part of the exchange’s ongoing efforts to expand its offerings beyond just simple buying and selling of cryptocurrencies. By offering perpetual contracts, which are an increasingly popular trading instrument, Gemini is catering to the demands of its sophisticated and institutional customers who want a wider range of investment options. Additionally, with the launch of the Gemini Foundation, the exchange is also taking steps to establish itself as a global player in the cryptocurrency market.

Gemini’s Derivatives Platform: What to Expect

The first product offered by the Gemini Foundation will be a perpetual Bitcoin (BTC) contract priced in Gemini dollars (GUSD). This means that traders will be able to bet on the future price of Bitcoin without actually owning the asset, with the contract denominated in Gemini’s stablecoin. The next product on offer will be a perpetual Ethereum (ETH) contract also linked to GUSD. This will give traders the opportunity to speculate on the price of Ethereum in the same way as Bitcoin, with the added benefit of being denominated in a stablecoin.

Advantages of Trading on Gemini’s Derivatives Platform

One of the main advantages of trading on Gemini’s derivatives platform is the ability to trade perpetual contracts. This means that traders can hold their positions as long as they like, without having to worry about the expiration of the contract. Additionally, by being denominated in Gemini’s stablecoin, GUSD, traders can avoid the volatility associated with other cryptocurrencies. This makes trading on Gemini’s platform a more attractive option for risk-averse traders who want to minimize their exposure to market fluctuations.

Conclusion

Gemini’s announcement of its plans to launch a derivatives platform abroad is yet another indication of the exchange’s ambitions to be a major player in the cryptocurrency market. By offering perpetual contracts denominated in its stablecoin, GUSD, the exchange is catering to the needs of its institutional customers and giving traders more options to hedge their positions. As the cryptocurrency market continues to evolve, it’s likely that we’ll see more exchanges following in Gemini’s footsteps and offering an increasingly diverse range of trading instruments.

FAQs

1. Can anyone trade on Gemini’s derivatives platform?

Yes, anyone with a verified Gemini account will be able to trade on the derivatives platform.

2. What is the advantage of having a perpetual contract with no expiration date?

A perpetual contract allows traders to hold their positions as long as they like, without having to worry about the expiration of the contract.

3. Is trading on Gemini’s derivatives platform risky?

Like any type of trading, there is always a level of risk involved. However, by being denominated in GUSD, traders can avoid the volatility associated with other cryptocurrencies, making trading on Gemini’s platform a more attractive option for risk-averse traders.