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Bitcoin exchange Bybit introduces a tool for hedging.

April 04, 2024
1 Min Read

One of the top three cryptocurrency exchanges in the world by volume, Bybit, is excited to announce the release of Dynamic Delta Hedging (DDH), its most recent invention.

Institutions and professional traders are empowered by this state-of-the-art risk management solution, which allows them to precisely navigate market turbulence.

The automated adjustments provided by Dynamic Delta Hedging allow traders' portfolio deltas to be recalculated every six seconds. This protects against abrupt market swings by ensuring that investments are consistently in line with traders' risk tolerance and market fluctuations.

The CEO and co-founder of Bybit, Ben Zhou, stated, "Our institutional clients benefit greatly from Bybit's Dynamic Delta Hedging." "With ease never seen in the crypto space, DDH allows them to stay ahead of market trends, minimize risk, and enhance profitability."

 

DDH works by automatically carrying out the trader's buy or sell orders for perpetual contracts at the going rate. Their options contract's delta stays perfectly within the intended range thanks to the smooth integration of technology and trading technique, which reacts instantly to market movements.
Advantages of Hedging with Dynamic Delta:
• Automated Adjustments: Every six seconds, DDH modifies your portfolio's delta.
• Risk Mitigation: DDH lowers exposure to market volatility considerably.
• Increased Profit Potential: DDH gives traders the opportunity to profit more by enabling them to quickly take advantage of market developments.

 

Following Bybit's recent introduction of Solana (SOL) options, which makes the exchange one of only two venues to host this product and help traders better manage their SOL positions, Dynamic Delta Hedging is being launched.
 

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