Crypto.com, one of the leading crypto exchanges, has announced the launch of strike options for XRP.
These are short-term trading products that make it possible for traders to predict whether a certain token will be able to exceed a certain price point. These are simple “yes” or “no” predictions.
Traders who manage to make a correct prediction based on the strike price get a payout. It is possible to exit a trade early if an asset trades in your favor before the contract actually expires (usually about 20 minutes).
Apart from XRP, strike options are currently available for a slew of other cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
The strike options offered by Crypto.com are regulated by the Commodity Futures Trading Commission (CFTC).
As reported by U.Today, Crypto.com also introduced up-and-down options for XRP back in February. Unlike strike options, they limit potential profit and losses by automatically exiting a trade when a predetermined ceiling or floor is reached.
The up-and-down option could be suitable for those who want to bet on the XRP price increasing while limiting their losses. With strike options, both profits and losses could be potentially unlimited.
In other news, derivatives giant CME Group recently launched regulated XRP futures, paving the way for the potential approval of spot-based XRP exchange-traded funds (ETFs) later this year.
Source: https://u.today/xrp-gets-strike-options-support-on-major-exchange