- Amid the ongoing oil frenzy, FTX oil futures has launched
FTX, which is an increasingly popular crypto derivatives exchange that offers up to 101X leverage, has launched oil futures. The FTX oil futures contracts expire at the spot price of West Texas Intermediate (WTI), which is the most popular type of oil in the United States. Notably, FTX has added USD 100 on to the WTI spot price, to prevent FTX oil futures from going negative.
Indeed, for the first time in history oil prices went negative this week, meaning that there was too much oil and nowhere to store it, so oil producers were paying people to take oil away. WTI futures went as low as negative USD 40.
These unprecedented negative oil prices are why FTX is launching oil futures now since speculators worldwide want to buy up oil at these ridiculously low prices.
Zooming out, now that a crypto derivatives exchange has oil futures, traders will be able to trade between the crypto and oil markets, which could lead to interesting new trading strategies.
Image Courtesy: Pixabay