OKX, the second-largest crypto exchange by trading volume and a leading Web3 technology company, has introduced 'Nitro Spreads' on its institutional Liquid Marketplace. This innovative feature simplifies complex basis trading into a single click, enhancing efficiency for institutional traders.
What Is Basis Trading?
Basis trading capitalizes on price differences between two related markets (e.g., spot vs. futures). Traditionally, this requires simultaneous execution of both trade legs, which can be technically demanding. Nitro Spreads automates the process, leveraging OKX’s deep liquidity and low-latency infrastructure to minimize risks and maximize returns.
Key Features of Nitro Spreads
- Central Orderbook Execution: Both trade legs are executed within a unified orderbook, eliminating leg risk between markets.
- Guaranteed Spreads: Traders can pre-set spreads to mitigate price slippage.
- Instant Settlement: Trades are matched and settled immediately.
Lennix Lai, OKX Global Chief Commercial Officer:
"Institutions need precision and innovation for basis trading. Nitro Spreads sets a new industry standard by combining reliability with streamlined execution."
Strategies Enabled by Nitro Spreads
Institutional traders can deploy advanced strategies seamlessly:
- Calendar spreads
- Future rolls
- Funding rate arbitrage
👉 Explore OKX Liquid Marketplace
OKX Liquid Marketplace Milestones
- Surpassed $1 billion in Q1 2023 trading volume.
- Supports futures spreads, block options, and OTC spot trading.
FAQs
Q1: What is leg risk in basis trading?
Leg risk occurs when one trade leg executes successfully while the other fails, creating exposure. Nitro Spreads mitigates this via centralized orderbook execution.
Q2: How does Nitro Spreads guarantee spreads?
Traders can lock in a predefined spread before execution, ensuring predictable outcomes regardless of market volatility.
Q3: Is Nitro Spreads available to retail traders?
Currently, it’s tailored for institutional participants on OKX’s Liquid Marketplace.
Q4: What assets support Nitro Spreads?
Major cryptocurrencies with active futures and spot markets are eligible.
About OKX
OKX is a global leader in crypto trading and Web3 innovation, trusted by 50M+ users. Key partnerships include:
- Manchester City FC
- McLaren Formula 1
- Tribeca Festival
The platform emphasizes transparency with monthly Proof of Reserves audits.
Disclaimer
Digital assets involve high risk and volatility. OKX is not FCA-regulated. Consult a financial advisor before trading.
Press Contact: [email protected]