Renowned cryptocurrency derivative exchange BitMEX has collaborated with PowerTrade to bring options trading to its platform, aiming to compete with Deribit in this specialized market.

Stephan Lutz, the CEO of BitMEX, shared that the company's goal is to achieve a trading volume of $500 million within three months. He emphasized that BitMEX would offer options trading in all regions where it operates.

Despite Deribit's dominance, BitMEX, along with other major exchanges like Binance and OKX, are striving to capture a portion of the options trading market share. However, their success has been limited so far.

BitMEX's options trading platform will provide a wide range of institutional-grade options for various digital assets, including Bitcoin, Ethereum, Ripple's XRP, Binance Coin, Dogecoin, and Solana, with plans to incorporate more cryptocurrencies in the future.

PowerTrade's CEO, Mario Gomez Lozada, noted that the collaboration merges PowerTrade's trader-focused options solution with BitMEX's liquidity and reliability, offering traders access to high-performance financial products.

BitMEX's Options Trading Strategy

BitMEX's initial strategy involves offering free options trading in May, along with monthly trading competitions, incentives based on trading volume, and referral bonuses. The first 1,000 new options traders will receive a $20 onboarding bonus.

After the initial promotional period, BitMEX will implement a fee structure for options trading, mirroring its current spot trading pricing. The exchange plans to provide educational resources such as tutorials and strategy examples to assist users unfamiliar with options trading or the BitMEX platform.

To enhance user experience and market competitiveness, BitMEX will offer a user-friendly options trading interface with features like an order book and Request-for-Quote (RFQ) to reduce counterparty risk. RFQ enables traders to obtain electronic quotations and execute various options strategies easily.

BitMEX's success in securing a market share in the competitive options market against industry leader Deribit will depend on the execution of its ambitious plans.