In the words of Lennix Lai, Global Chief Commercial Officer at OKX, “Nitro Spreads raises the bar for the industry for efficient basis trading, and we invite institutional traders everywhere to see how it can enhance their strategies and contribute to their success.”
OKX released the Nitro Spreads feature on its OTC liquid exchange to allow institutional clients to execute complex basis trades in a single click.
Basis trading leverages the difference in an asset’s price on two separate markets. However, this complex process requires timely execution of trades to take advantage of the discrepancies in a crypto instrument’s prices.
OKX’s Nitro Spreads feature aims to lower the risk involved with basis trading by executing the two legs of the basis trade using a central order book. Nitro Spreads also allows institutional customers to set a guaranteed spread for a trade. By doing so, clients can mitigate losses caused by unexpected price slippages.
Recounting FTX’s failure in November 2022, Lai claimed that the exchange’s collapse significantly reduced institutional participation in the crypto market. According to him, Nitro Spreads’ simple interface will grant predictable returns for investors by improving the precision of complex basis trades.
Currently, OKX’s Nitro Spreads facility is available in beta access and requires users to fill out an application form to gain access to this feature. Investors can also execute calendar spreads, future rolls, and a variety of delta one spread strategies using the Nitro Spreads interface.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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