The leveraged cryptocurrency exchange FTX added a new product to the stock market following the developments in the oil market.
FTX users can trade on the stock exchange with different products. The stock market announced two weeks ago that the United States has developed a product for this year’s presidential election, and users can now trade futures over presidential candidates.
FTX issued another announcement this morning and announced that oil futures have started.
The barrel price of West Texas (WTI) type crude oil fell to the negative zone recently. While something never seen before in the oil market, a move came from FTX.
According to the statements made by FTX, users can now trade futures oil. The interesting thing is that FTX adds +100 dollars to each contract against the risk of oil price falling in the negative region. The note shared by FTX on the subject is as follows:
“We add $ 100 to each contract in case the spot price of oil drops to negative. But remember that if the spot price of oil drops below -100 $, FTX OIL contracts can theoretically fall into the negative zone. ”
Even a few days ago, not a few months or years ago, people would probably laugh if they came and said, “The spot price of oil is likely to drop below $ 100.” But this possibility now really exists.
Since FTX will add $ 100 to each contract, the price of the contracts will be slightly above $ 100. Therefore, investors need to consider this and set a margin accordingly.