The Best Crypto Derivatives Exchanges
Crypto derivatives are essential tools for institutional traders, enabling them to diversify portfolios, hedge against market volatility, and implement sophisticated risk management strategies. This article explores 12 of the leading crypto derivatives exchanges that cater specifically to the demands of professional and institutional traders.
Crypto derivatives are essential tools for institutional traders, enabling them to diversify portfolios, hedge against market volatility, and implement sophisticated risk management strategies. These instruments allow traders to speculate on price movements or secure positions without needing to directly hold the underlying assets. Institutional-grade platforms stand out for their deep liquidity, strict compliance with global regulations, and advanced tools designed to support high-stakes trading.
This article explores the leading crypto derivatives exchanges that cater specifically to the demands of professional and institutional traders.
What Is a Crypto Derivatives Exchange?
Since an exchange is a network or marketplace where trading happens, a crypto derivatives exchange works like a network that allows traders to buy and sell cryptocurrencies. It differs slightly from your typical cryptocurrency marketplace because a crypto derivatives exchange is used to trade secondary contracts, which base their value on the primary asset (i.e., the cryptocurrency).
Traders can use derivatives to get a feel of cryptocurrencies’ price fluctuations, without necessarily having to own the coin in their digital wallet. It’s worth noting that while you can trade crypto futures and options on the major futures exchanges like CME and Eurex, these are not available 7 days a week. There can be gap risk over the weekend where the price of the underlying asset makes a big move when these futures markets are open. In contrast, crypto markets operate continuously 24/7. This round-the-clock availability adds flexibility. However, it also requires traders to leverage advanced tools to capitalise on 24/7 trading. It would be wise to make yourself familiar with the 7 day-a-week crypto derivatives exchanges which we look at below.
Also, equipping yourself with a dynamic cryptocurrency information portal like Laevitas lets you stay ahead of trends and make informed decisions when trading (see more below).
Different Types of Crypto Derivatives
Crypto derivatives get their value from a main asset, and traders who purchase derivatives buy a contract that represents that asset. There are three different types of crypto derivatives: futures, perpetual swaps, and options. Here’s a quick rundown of what they are and what they’re for.
Futures
Crypto futures are derivative contracts that allow traders to agree to buy or sell a specific cryptocurrency at a predetermined price on a set future date. These contracts enable participants to speculate on the future price movements of cryptocurrencies without owning the underlying asset, offering opportunities for profit in both rising and falling markets. Crypto futures come in two main types: fixed-date futures, which have a specific expiration date, and perpetual futures (see below), which do not expire and rely on funding rates to maintain price parity with the spot market.
One of the key features of crypto futures is the ability to use leverage, allowing traders to control larger positions with a smaller amount of capital. For example, leverage ratios can range from 2x to over 100x, amplifying both potential profits and risks. Also these contracts are often used for hedging purposes, enabling investors to protect their portfolios against adverse price movements by taking offsetting positions in the futures market.
Major regulated and liquid exchanges like the CME and Eurex offer futures contracts in the major cryptos such as BTC and ETH, but as these exchanges follow the usual future exchange opening hours (ie 5 days a week) there is gaop risk over weekends.
Perpetual Swaps
This type of crypto derivative contract is similar to futures, except it’s not time-bound. There is no expirationor settlement date on a perpetual contract, unlike traditional futures. These derivatives allow traders to hold positions indefinitely, allowing traders to hold their positions for as long as they want. To maintain price parity with the spot market, perpetuals employ a funding rate mechanism, where periodic payments are exchanged between long and short position holders based on the difference between the contract price and the underlying asset’s spot price, similar to a CFD (Contract For Difference).
Their high leverage and volatility make Perpetuals a risky instruments, particularly for inexperienced traders. However, perpetuals have become one of the most actively traded products in crypto markets, with daily volumes often exceeding those of spot trading
Options
Crypto options are useful tools for risk management, allowing traders to choose whether to fulfil their contracts. Buyers only need to pay a premium to the seller to speculate on the price of an asset, but they are not obligated to transact at the end of the contract.
Crypto options, like options on other instruments such as currencies, are derivative contracts that grant traders the right, but not the obligation, to buy or sell a cryptocurrency at a predetermined price (strike price) before or on a specific expiration date. These contracts come in two main types: call options, which allow the holder to buy the asset, and put options, which allow the holder to sell it. Unlike futures contracts, crypto options provide flexibility by limiting potential losses to the premium paid for the contract while offering significant profit potential if the market moves favorably. This makes them an attractive tool for both speculation and risk management in volatile cryptocurrency markets.
One of the key advantages of using options when trading crypto is their versatility in enabling various trading strategies. For instance, traders can use covered calls to generate income in stable markets or protective puts to hedge against potential losses. More advanced strategies, such as straddles and strangles, are designed to profit from high market volatility by combining call and put options at different strike prices or expiration dates. These strategies allow traders to tailor their positions based on market conditions and risk tolerance, making crypto options a versatile tool for both hedging and speculative purposes
Why Trade Crypto Derivatives?
Derivatives are a great way to diversify your portfolio. They also allow you to exercise risk management in crypto trading. Learning about the different exchanges will help you choose the most suitable platform for you to manage your crypto investments. Ultimately, the right platform depends on your trading goals, preferred features, and security requirements.
Best Crypto Derivatives Exchanges
D2X
D2X, the first MiFID II-regulated platform for futures and options trading, went live in December 2024 is reshaping the European crypto market, with initial focus on Euro denominated contracts. The Amsterdam-based venue aims to bridge the gap between traditional finance infrastructure and crypto-native trading venues by offering off-exchange collateral management and robust counterparty risk mitigation, while maintaining continuous trading through weekends when traditional venues are closed.
Operating under a Multilateral Trading Facility (MTF) license granted by the Dutch Authority for the Financial Markets (AFM), D2X operates 7 days a week, specialising in Euro-denominated contracts like BTC-EUR and ETH-EUR. USD-denominated futures pairs for both cryptocurrencies will follow in Q1 2024, with options on these pairs scheduled for Q2. With a sharp focus on regulatory compliance, D2X ensures unmatched transparency and security.
Coincall
Launched in 2022, Coincall offers a wide array of features tailored to both beginners and institutional traders. These include spot trading, options trading, non-liquidation futures, altcoin options trading, perpetual futures, and advanced tools like Take Profit (TP) and Stop Loss (SL) orders.
With Take Profit (TP) and Stop Loss (SL) orders, the platform empowers institutions to manage market volatility with precision, ensuring better control over trades during turbulent markets. Coincall's emphasis on security is clear in its use of third-party custodians to safeguard user funds. Specialising in options trading, the platform delivers a seamless and efficient experience for professionals navigating complex derivatives markets.
HTX
HTX, formerly Huobi (Huobi changed its name in September 2023), offers a comprehensive suite of trading products tailored to both retail and institutional users. The platform supports an extensive range of derivatives, including perpetual swaps, traditional futures, coin-margined futures, and USDT-margined futures, with leverage options of up to 200x. HTX also provides European and American-style options, enabling traders to implement diverse strategies. Its innovative leveraged Exchange Traded Products (ETPs), offering up to 5x leverage without liquidation risks, cater to users seeking simplified access to leveraged trading. These features, combined with robust liquidity and advanced trading tools, make HTX a versatile choice for derivatives traders.
One of HTX’s key strengths lies in its user-centric approach, offering advanced trading tools such as customizable charts, technical indicators, and APIs for automated trading. The platform emphasizes security through two-factor authentication (2FA), encryption protocols, and regular audits. Additionally, HTX provides flexible margin structures—isolated and cross-margin options—allowing users to manage risk effectively. Its “Earn” feature enables users to generate passive income through staking and flexible or fixed-term investment products.
HTX’s deep liquidity and high trading volumes ensure minimal slippage for derivatives traders, and has a wide range of supported cryptocurrencies for portfolio diversification. The platform also facilitates copy trading and crypto loans, broadening its appeal to novice and experienced traders alike.
Thalex
Derivatives exchange Thalex, which launched in 2023, has quickly established itself as a prominent player in the market by offering innovative features tailored to institutional and advanced retail traders. The platform specializes in stablecoin-settled options, futures, and perpetual contracts, enabling users to trade with reduced volatility risks and simplified pricing models. Thalex’s integration with major exchanges like Bitfinex and Bitstamp has expanded its reach, allowing seamless onboarding and cross-platform trading. With a focus on low fees (1 bps maker and taker rates) and portfolio-based margining for capital efficiency, the platform has processed over $2 billion in trading volume since going live, with most volume from institutional clients.
One of Thalex’s standout features is its support for multi-leg strategies through Request-for-Quote (RFQ) mechanisms and dedicated order books for future rolls. This functionality caters to sophisticated trading strategies while maintaining a user-friendly interface. The platform also employs an efficient liquidation process with automated delta-hedging and liquidation auctions to minimize market disruptions. Its Market Quality Program incentivises liquidity provision by rewarding limit orders with a $200,000 monthly pool, fostering a competitive yet balanced trading environment.
Thalex’s strategic partnerships with liquidity providers such as Flow Traders, IMC, and Wintermute ensures high liquidity and market stability. The exchange’s hybrid distribution strategy combines direct user onboarding with integrations into partner platforms like Bitfinex, which recently enabled full access to Thalex’s product suite. This collaborative approach not only broadens access but also strengthens Thalex’s infrastructure as it scales operations.
OKX (Nitros)
OKX stands out for its user-friendly interface and broad trading options, catering to both beginner and advanced traders. It offers both derivatives and spot trading, allowing traders to buy and sell a wider range of assets without any delays. Currently, OKX has more than 300 spot trading options and 500 trading pairs.
Its Web3 wallet and multi-chain integrations are a game-changer for cross-chain liquidity management, enabling institutions to optimise their portfolios across blockchains. With robust API access, OKX supports algorithmic trading and advanced portfolio management, making it a top choice for institutions seeking efficiency and scalability in crypto trading.
https://www.okx.com/institutions
Paradigm
Paradigm provides advanced liquidation mechanisms tailored for traders executing large-size and multi-leg strategies. Its delta-neutral execution strategies empower institutions to hedge against market volatility, minimising exposure to price swings while maximising stability. With access to deep liquidity across 120+ products, the platform ensures seamless execution of large and complex trades with minimal slippage.
The platform’s non-custodial model enhances security and control by entrusting funds to trusted settlement partners like centralised exchanges or blockchain protocols. Adding in zero-fee trading, Paradigm becomes a cost-effective and reliable choice for high-frequency institutional traders.
MEXC
MEXC is a robust platform for trading in derivatives because of its variety of tools created especially for that purpose. On the platform, traders can do up to 200x of leveraged trading on certain pairs, and you can choose between delivery and perpetual contracts based on how the market is doing. Ultimately, MEXC is best for traders who want to be early investors in new crypto projects or want to copy the trading strategies of more experienced traders.
BitMEX
On BitMEX, traders can leverage up to 100x on Ethereum and Bitcoin derivatives, offering the potential for increased profits. BitMEX is also an excellent platform for beginners because it provides its customers with free educational articles and trading guides to get started with crypto trading. It is known for its fast execution and low fees, providing both futures and perpetual swap contracts.
The platform is available on both web and mobile. While the mobile app has limited features compared to its web version, it’s still a useful tool for on-the-go trading. For corporate clients, BitMEX offers tailored services like 24/7 support, consulting, and strategies for institutional trading.
However, in its early days, the lack of KYC checks and sky-high leverage options gave it a “casino” reputation. These days, BitMEX has cleaned up its image with identity verification and a focus on compliance.
Phemex
While initially more known as a platform geared towards perpetual contracts trading, Phemex has grown into a more well-rounded exchange. It allows investors to trade in hundreds of different cryptocurrencies, and it’s suitable for trading in large volumes. It also has copy trading features and offers contests where customers can earn. However, compared to other exchanges, it doesn’t offer as many derivatives to invest in.
Deribit
Deribit is one of the platforms that lets traders buy and sell cryptocurrency options, setting it apart in the market. In addition to options, it offers Bitcoin and Ethereum futures, giving traders more choices beyond the typical Bitcoin futures platforms. However, it does have some drawbacks. The platform primarily supports crypto-to-crypto transactions and has limited options for spot trading. It also doesn’t allow fiat currency deposits or withdrawals, which could be a challenge for some users.
PrimeXBT
PrimeXBT allows investors to trade in a variety of assets. This includes cryptocurrencies, forex, commodities, and indices, giving traders access to over 100 global markets. The platform offers up to 100x leverage on crypto assets and features a customisable trading interface to suit individual trader preferences.
The platform has two key offerings. The first is margin trading, which means investors can borrow funds to boost their capital. The second is crypto CFDs, or Contracts for Differences, which are derivative products that allow investors to trade according to an asset’s price movements.
https://primexbt.com/crypto-futures/markets
Binance Futures
Binance uses funding rates in its perpetual swap contracts to keep the price close to the spot price. The funding rate is applied to each perpetual swap order and is calculated using the interest rate and premium. On Binance Futures, the interest rate is fixed at 0.03% per day.
Binance offers various products to cater to different trading needs, but its main drawback is that you can only trade when you deposit USDT. USD-M Futures are margin perpetual contracts and quarterly futures settled in USDT or BUSD, while COIN-M Futures are settled directly in cryptocurrency. For those looking to engage in leveraged trading with less liquidation risk, Binance’s cross-collateralisation tools provide a safer alternative. Additionally, Binance supports crypto options trading through Binance Options, so traders have added flexibility when managing their portfolios.
Bybit
Bybit allows traders to leverage their positions up to 100x, so putting in a $100 investment can control a $10,000 trade. The platform offers advanced trading options to support various strategies.
What sets Bybit apart from other crypto derivatives exchanges is its cutting-edge technology. The platform claims to handle up to 100,000 transactions per second, which caters to institutional trading needs. Its advanced charting tools are popular for their functionality and customisable features, and users can also download trading data in multiple formats.
Bybit also has a risk-free testnet environment where beginners can practice strategies and familiarise themselves with the platform without using real money. This is especially useful for those new to derivatives, as it helps build confidence with these advanced tools.
Bitget
Founded in 2018, Bitget ranks among the top five globally for derivatives trading volume. The platform offers futures contracts with up to 125x leverage across multiple cryptocurrencies.
The exchange's core product is its copy trading system, which enables automated replication of selected traders' positions which has attracted significant user adoption.
Technical features include Quanto Swap contracts for cross-asset margin trading, a demo environment for strategy testing, and automated grid trading functionality for both spot and futures markets.
Security infrastructure comprises cold storage systems and an insurance fund. The fee structure follows a maker-taker model, with futures trading rates starting at 0.02%/0.06%.
While the platform offers advanced trading tools suited to experienced traders, its interface complexity may present a steeper learning curve for newcomers compared to other major exchanges.
https://www.bitget.com/futures
Kraken Futures
Kraken is a reliable platform known for its intuitive interface, strong security, and top-tier customer support. While its leverage is capped at 50x, lower than some of its competitors, it compensates with a robust offering of over 250 cryptocurrencies and hundreds of crypto-to-crypto trading pairs. Kraken Pro, however, stands out with its advanced trading tools and some of the lowest fees in the industry for high-volume trading. Its liquidity tools are particularly useful for institutions executing large trades. Additionally, Kraken puts a strong focus on regulatory compliance, holding several regulatory licenses across multiple nations, including the US, Canada, Spain, and the UK, among others.
That said, Kraken has some limitations, particularly for US customers looking to fund their accounts. The platform uses Trustly to connect with over 1,000 financial institutions, but not all banks are compatible. In such cases, users may need to arrange wire transfers, which can be a hassle. Despite this, Kraken’s combination of advanced features, strong reputation, and competitive pricing on Kraken Pro makes it a solid choice.
https://futures.kraken.com/trade/futures/PF_XBTUSD
Laevitas: A Resource for Crypto Derivatives Insights
As mentioned, Laevitas is not an exchange but an information portal. It was included in this article because it plays a helpful role in monitoring crypto derivatives market volumeopen interest and liquidity. It has a wealth of valuable insights into market trends and analytics across multiple exchanges and assets that help institutions develop and optimise their derivatives strategies.
Open Interest and trading volume is shown over at least 10 crypto exchanges that offer futures.
Its platform delivers valuable insights into a wide range of cryptocurrencies, including popular options like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB), as well as niche tokens and emerging DeFi projects. This variety makes it a useful resource for investors looking to learn more about the crypto market.
However, there are some considerations to keep in mind. The platform has limited user reviews, which may leave potential users uncertain about its reputation. Additionally, Laevitas enforces a non-refundable fee policy, so it is not as flexible when it comes to subscription choices.
https://app.laevitas.ch/assets/home
Author
| Geri Mileva |