Which exchanges can send option hedging instructions through the trading side

As of 2024, mainstream cryptocurrency exchanges that support directly sending option hedging instructions through trading terminals: 1. Deribit supports advanced strategies such as Delta hedging and Gamma Scalping, and provide web version/API one-click hedging; 2. OKX supports volatility hedging and strategy combination tools, and built-in hedging panels on the web/APP; 3. Binance supports protective hedging, requiring manual or API combination positions; 4. CME, providing standard options, requiring access through brokers; 5. LedgerX, providing professional-level hedging tools, requiring institutional certification.

As of 2024, mainstream cryptocurrency exchanges that support directly sending option hedging instructions through trading terminals (such as APIs, web versions or clients) mainly include the following categories:

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1. Professional-grade options exchange (supports complex hedging strategies)

(1) Deribit (the world's largest cryptocurrency options platform)

• Hedging function:

  • Supports advanced strategies such as Delta hedging and Gamma Scalping.

  • Provides a portfolio margin to automatically hedge risks.

• Trading terminal:

  • The web version/API supports one-click hedging, and can synchronize spot and option positions.

  • Supports programming hedging of Python/JavaScript API.

• Official website:https://www.deribit.com

(2) OKX (Ou Yi)

• Hedging function:

  • Option trading supports volatility hedging (such as long options and short futures).

  • Provide strategy combination tools (such as straddle and wide straddle arbitrage).

• Trading terminal:

  • The web/APP has a built-in "Options Hedging" panel, which can be manually or automatically.

• Official website:https://www.okx.com

(3) Binance (Binance)

• Hedging function:

  • Option trading (Binance Options Platform only) supports protective hedging (such as buying put options to hedge the risk of spot decline).

  • Spot/contract positions need to be combined manually or through the API.

• Official website:https://www.binance.com

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2. Compliance exchanges with traditional financial background

(4) CME (Chicago Mercantile Exchange)

• Hedging function:

  • Provides Bitcoin/Ethereum standard options suitable for institutional hedging.

  • It needs to be accessed through brokers (such as Interactive Brokers) to support algorithm hedging.

• Official website:https://www.cmegroup.com

(5) LedgerX (now FTX US Derivatives, regulated by CFTC)

• Hedging function:

  • Professional-grade options and futures hedging tools require institutional certification.

• Current situation: Restart operations in 2023 to serve US users.

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3. Automated hedging tools (API/third-party services)

• Kollider (Bitcoin Options Market Maker Tool, Supports Delta Neutral Hedging).

• HedgeGuard (institutional-level encrypted hedging management system that supports multi-exchange synchronization).

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4. Operation example (taking Deribit as an example)

1. Delta hedging:

   • Sell ​​call options (negative Delta) → Buy spot (positive Delta) offsets the risk.

   • Monitor and adjust positions in real time through the API.

2. Volatility hedging:

   • Buy options and sell futures, hedging implicit volatility changes.

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5. Things to note

• Liquidity risk: The market depth of the options on small exchanges is insufficient, and the hedging may have a large slippage.

• Compliance: Some platforms (such as Deribit) restrict U.S. users and require a virtual network.

• API documentation:

  • Deribit:API Docs

  • OKX: API Docs

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Summarize

• Professional traders: Deribit and OKX are preferred to support complex hedging strategies.

• Institutional users: consider compliance channels such as CME and LedgerX.

• Automation requirements: access to Kollider or build self-built hedging system through API.

If you need strategy configuration guidance for specific platforms, you can further explain the requirements (such as Delta hedging, volatility arbitrage, etc.)

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