Bityard is a Singapore-based cryptocurrency derivatives trading platform on a mission to simplify leveraged contract trading, with a “Complex Contracts, Simple Trade” approach.
The platform is relatively new and is likely to attract attention from many cryptocurrency traders considering options trading, but haven’t yet made the leap to an options-oriented platform (such as BitMEX).
Bityard currently offers trading for 8 different cryptocurrencies with a leverage of up to 100x. Readers should note that this article isn’t investment advice. Margin trading can be very risky, do your research and consult with a licensed financial advisor as necessary.
What is Bityard?
Bityard is a privately held cryptocurrency contracts exchange that seeks to differentiate itself by providing easy, fast, and safe cryptocurrency asset contract trading.
Launched in November 2019, the holding company is based in Singapore and has its primary office listed at Paya Lebar Square. Bityard doesn’t use order books– the exchange matches user trades itself. This helps to avoid slippage in the trades.
To understand Bityard better, let’s go over cryptocurrency options trading in general.
What is Cryptocurrency Option Trading?
Readers should note that Bityard differs from a traditional cryptocurrency exchange in that its primary value is providing cryptocurrency option contract trading– and not actual cryptocurrency-to-cryptocurrency exchanges.
When using BitYard, you are not “buying” Bitcoin or Ethereum, but rather buying an options contract.
Contracts are trading instruments that enable investors to trade on the price movements of an asset without actually holding the asset. For example, these contracts can be held on physical commodities like rice, crude oil, or chickens, or financial instruments like bonds, stocks, and digital assets.
Buyers and sellers usually use contract trading as a way to hedge and minimize risks, protect against volatile future price swings, and speculate on the assets. Contracts involve buyers, sellers, and an agreed price.
For example, let’s take a look at Bitcoin options trading on Bityard. Users are able to purchase a USDT-BTC option contract with up to 100x leverage and not actually hold the BTC asset.
Bityard offers cryptocurrency margin trading, meaning that a trader would only need to put down a fraction of the full trade amount in a leveraged position. Cryptocurrency margin trading on Bityard is a relatively simple process.
For 1000 USDT and 100x leverage, we would reach an initial margin of 10.6806 BTC (1000 USDT x 100 equals about 10.68 BTC at the current prices). We would also pay about 100 USDT in fees to purchase the contract with 100x leverage.
If the BTC price were to drop to 9278.46 (the SL “stop loss”) the contract would close and we would lose 900 USDT– yikes.
If the BTC…