Banahmian cryptocurrency exchange FTX and prominent crypto investment firm Parading reportedly came together regarding a significant goal. The collaboration came in the wake of fulfilling the aim of carrying out the launch of crypto assets spread trading. This feature is expected to essentially make users of the firms take advantage of dislocations in pricing.
In a nutshell, the concept of Spread Trading is used when one security gets purchased and at the same time sale of a related security takes place. While considering it as a single unit, this is termed as legs. The announcement of partnership between FTX and Paradigm made in the official blogpost of the investment firm.
The blog explained that the recent team-up between the firms would help the users get benefited through single-click trading while eliminating potential risk in leg phenomenon. Further it also added that the new deal would also be aiming towards attracting more unique investors who were interested in cash and carry the trades. Crypto spot purchases and related future investment devices on the crypto exchange FTX.
Investment firm further noted that this will enable users to trade using the spot, perpetual and futures on eight distinct cryptocurrencies. These crypto offering includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), Avalanche (AVAX), ApeCoin (APE), Litecoin (LTC) and Chainlink (LINK).
While FTX took responsibility for ensuring the atomic execution and resolving the issues with both the legs within the trades. FTX CEO, Sam Bankman-Fried said that Paradigm is one among the prominent network providers of institutional liquidity related to crypto derivatives and he showcased the excitement for expansion of their formal partnership and relationship.
SBF further added that the structured trading product would be the first thing that the firms would make available to crypto investors in order to utilize case and carry trades features using platforms of FTX and Paradigm.
Source: https://www.thecoinrepublic.com/2022/08/14/ftx-and-parading-collaboration-towards-launching-spread-trading/