Recommended
Bybit Climbs CME to Become No. 2 Bitcoin Futures Exchange with Open Interest
2022/04/15By:
One trader cites Bybit higher leverage limit, but other factors may at play, too, analysts say.
Bybit, a cryptocurrency exchange with more than 2 million registered users, has overtaken the Chicago Mercantile Exchange (CME) as the second-largest bitcoin futures exchange by open interest (OI), according to data from Skew.
Open interest is the total number of outstanding derivative contracts, such as options or futures held by market participants at the end of a day. Open interest measures the total level of activity in the futures market.
Bybit now has $2.48 billion in BTC futures open interest, whereas CME has $2.3 billion, according to Skew. Binance is still No. 1.
“Both retail and institutional investors tend to choose Bybit for its high liquidity, low spread and outstanding reliability when the battle between longs and shorts heat up,” said a Bybit representative.
High Leverage of Bybit, High Risk
Mike Schwitalla, a senior trader at Crypto Finance AG, said one reason Bybit surpassed CME is that Bybit’s leverage limits are much higher than CME’s.
Matthew Dibb, Stack Funds’ co-founder and chief operating officer, said that Bybit has become the go-to venue for high leverage trading of bitcoin futures.
“When Bybit’s OI is increasing, it generally means that retail traders are using heavy margin to directionally trade,” Dibb said in an interview.
“The other side of this is that in the event that there is a substantial liquidation day, Bybit usually has the highest number of traders and value liquidations of any exchange,” he added.
Download App for Android | Download App for iOS |
Speculation Abound– And Possibly Some Hot Trades
Joshua Lim, head of derivatives trading at Genesis Global Trading, said there’s been a lot of speculation among traders over Bybit flipping CME in terms of open interest.
There was a large spike in BTC September futures that occurred on April 7, which has been unwound, according to Lim.
Open interest on the September futures got as high as $1.9 billion, but now sits at $677 million.
“Some traders were speculating that it was related to an exchange update that was rolled out to algo (algorithmic) market makers, and others were speculating that it was related to some kind of basis trade being executed,” Lim said in a Telegram conversation.
Register now to begin your crypto journey
Download the BTCC app via App Store or Google Play
Follow us
Scan to download
- Terms & Agreement
- Customer Service
Quick Links
Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.
The world’s longest-running cryptocurrency exchange since 2011 © 2011-2024 BTCC.com. All rights reserved
Comments
Leave a comment
Your email address will not be published. Required fields are marked with an asterisk (*).
Comment*
Name*
Email address*