We're sure by now that you have probably seen many derivatives trading platforms in this space, some of which try to implement their own spin to gain a competitive edge. This time we have found one with a rare, exciting aspect!
Meet Overbit. A recently established derivatives trading platform based out of Seychelles. Overbit’s innovative leveraged trading platform allows cross-market trading using Bitcoin as the underlying asset. With Overbit, you can trade Cryptocurrency, Metals and Indices using your Bitcoin.
What does this mean for your average trader? This means that not only will you be able to long and short the market, you will also be able to cross-trade between other established assets such as metals and indices to further your trading positions using Bitcoin.
So how does it work? Overbit allows you to deposit Bitcoin and trade it against other instruments and currencies with leverage. The price of a contract is similar to the spot price, but you have the option to use leverage, which could reduce your cost of capital. The contract works in a similar way to CFD (Contract For Difference) contracts. It means you can go Long or Short on a larger amount of Bitcoin (or Bitcoin value equivalent) against another instrument such as USD, ETH, Gold (and more). You simply need to have enough funds to cover the margin (difference in overall price movement).
The XBTUSD contract’s underlying price is the Overbit Index. This is dynamically weighted over several exchanges. The weighting of each exchange is determined by the size of the order book for the price quoted at the time. XBTUSD is quoted in USD. Margin and PnL calculations are denominated in Bitcoin.
We recently had the opportunity to chat with the CEO of Overbit, Chieh Liu, on The CryptoClass. Chieh is an avid entrepreneur and investor, founder of several successful technology and finance companies and has over eight years experience in FX trading and derivative products. He also has extensive experience in blockchain and is one of the early blockchain evangelists in the professional consulting space. Throughout his career, Chieh has worked in China, Hong Kong, U.K, U.S, Japan, Korea, and Taiwan. Furthermore, Chieh has a degree in Computer Science from Cal Poly Pomona, California, US. It was a breath of fresh air discussing a project with a real utility in this space, and in particular, during this down trend, with someone of the experience and knowledge like Chieh.
One of the important factors we always observe when analysing a project is the team involved. Will the team be efficient and experienced enough to develop the platform successfully? Chieh told us himself that his team "consists of 30 members with experience in Forex and trading to help develop the interfaces and platform". A quick observation of the team members visible will confirm this.
In conclusion, Overbit shows us the possibilities and relationships that cryptocurrency can have with other assets in the world of trading. It is another clear example of utility for Bitcoin. To find out more about Overbit and/or to sign up, visit https://www.overbit.com.