XRP cryptocurrencies focused on XRP payments
It has increased by 12% in the last 24 hours, surpassing Bitcoin and Ether (Eth). This two -digit gain has raised the price of XRP to $ 3.32, its highest level since July 28.
The price increase has been supported by sophisticated and anticipatory blocking options quote on Deribit, which imply an upward bet for volatility. Block operations are large transactions executed without recipe and outside the public order book to minimize its impact on the market price prevailing an asset.
The first block exchange executed on Thursday implied the simultaneous purchase of 100,000 contracts of the chain call options and sale of expiration chains of August 29 in the $ 3.20 strike. The merchant paid more than $ 416,000 on premiums for the so -called long -term strategy, which benefits from wild changes in any direction. A great similar Straddle was also reserved on the $ 3.10 strike.
The great non -directional flow points to a growing institutional interest in XRP, said Asia Business Chief of Deribit, Lin Chen, Coindesk.
“XRP has surpassed BTC this year, and now we are seeing an increase in block trades and institutional interest in XRP options. We have also launched XRP options at the end of the year to meet this demand,” Chen said.
Merchants use Straddles by anticipating an important volatility event, such as a large gains report, a key court ruling or a significant product launch, but they are not sure whether the impact would be bullish or bassist. The risk reward profile of a long Straddle is defined by a potential for unlimited gains and a limited risk.
Coincidentally, on Thursday, the Stock Exchange Commission and Ripple jointly agreed to eliminate their appeals in the case of the second case of the circuit court, ending a long legal struggle. Ripple use XRP to facilitate cross -border transactions.
Limited loss, unlimited gain strategy
The maximum loss in long Straddles is limited to the total cousin paid both by the call and by the pun.
However, the maximum benefit is unlimited since the price can move up or down indefinitely. To reach the equilibrium point, the price must move in any direction in an amount equal to the total cousin paid.
The options are derived contracts designed to protect merchants from bullish or bassist volatility. A purchase option provides coverage against the trends achieved in the underlying asset, while a sales option offers insurance against market SINW.
