FT Exchange Cryptocurrency Derivatives Exchange: Safe Trading Platform?
What Is FT Exchange?
FT Exchange is a crypto derivative exchange platform that offers a wide range of innovative features on various markets with the aim of solving the major issues associated with trading on other similar platforms. Additionally, FT Exchange seeks to create a more professional crypto derivatives market that can serve both individual and institutional investors.
One of the major challenges facing traders on most exchanges is that the traders have to use different margin accounts for the various products and different collateral for the products traded, which makes it difficult to rebalance portfolios. FT Exchange on the other hand enables traders to settle their derivatives in stable coins such as USDT or USDC and collateral can be shared in a universal margin wallet.
How Does FT Exchange Work?
FT Exchange is integrated with a unique liquidation engine that prevents clawbacks from occurring during losses. The mechanism is responsible for monitoring the positions in order to identify when any position drops below an intelligent maintenance margin.
In cases where the position drops below the set margin, the platform will be forced to liquidate the trades on an incremental basis to prevent crashing the entire market. This will secure the user’s trades and prevent unnecessary losses.
FTX provides traders with access to future contracts for Bitcoin, Ripple, Ethereum, and Tether. The platform also offers traders with access to leveraged tokens that can be listed on any exchange, which provides the traders with the opportunity for short and leveraged positions.
FT Exchange Accepted Token
The FT Token (FTT), powers the FT Exchange platform. Ownership of the tokens will provide users with a various benefits on the platform. For instance, holders of FTT will be part of the revenue sharing model whereby a third of the revenues generated on the FT Exchange platform are distributed to the token holders depending on the amount of tokens held.
Furthermore, the tokens can be used to access lower spreads during Over the Counter trading as well as collateral on the platform, which reduces the trading fees they should pay, and the margin requirements while trading on FT Exchange.
FT Exchange Advantages
With the FT Exchange, traders can acquire short or leveraged positions without having to store their tokens in a margin wallet. This eliminates the need for the traders to monitor their positions in case the margin is called.
Access To High Liquidity Levels
FT Exchange has collaborated with Alameda Research, which is a trading firm that aims at providing the cryptocurrency market with liquidity. Through this partnership, the exchange platform will have access to high levels of liquidity combined with the networks Alameda has with exchanges and trading desks.
Apart from providing FT Exchange with high liquidity levels, the partnership with Alameda will provide the exchange with the expertise of the Alameda’s team of technical experts; consequently, this will make it possible for the team to launch advanced products and services using less time.
Universal Margin Wallets
Since all the collateral on FT Exchange is shared in a single universal wallet and the derivatives can be settled using stablecoins, traders can deposit their stablecoins as collateral on any of the futures product.