Introduce 0 Spread Options Trading on Coincall – Coincall

Ask Price and Bid Price

The buy and sell orders that are placed on a specific market are called “Bids” and “Asks”.

The bid price is the highest price that a particular buyer is willing to pay for a specific product or service. While bids are offers in a base currency for a unit of the trading asset, asks are the selling prices set by those holding the asset and looking to sell.

Therefore, the asking price is the minimum price that an individual would be willing to sell their asset or the minimum amount that they want to receive in return for the unit they are parting with.

Bid-Ask Spread

The gap between the lowest ask price(sell order) and the highest bid price (buy order) is what is known as the spread of the market.

It can be created just by the differences between the limit orders placed by traders on an open market. Usually, high-volume markets have a lower spread because of their higher liquidity (more competition among buyers and sellers). On the other hand, markets that are not liquid enough and present low trading volume tend to have a more significant spread.

Coincall is the 1st Crypto Exchange in the industry to provide 0 spread Options trading. 0 spread options trading is supported on selected options.

A 0 spread in crypto options trading means that there is little to no difference between the lowest ask price(sell order) and the highest bid price (buy order) for a particular options contract.

At Coincall, the option contract will be marked as a “0 spread” option if the difference between the buying (bid) price and the selling (ask) price is less than 5 ticks.

Advantages

If we assume a hypothetical situation where there is a 0 spread in crypto options trading, potential advantages could include:

Lower Transaction Costs:

With no bid-ask spread, traders can enter and exit positions without incurring additional costs related to the spread. This can be particularly beneficial for high-frequency traders or those making numerous trades.

Improved Price Transparency:

A 0 spread can contribute to better price transparency, as there is no ambiguity about the actual market price of the option. Traders can execute trades at the displayed price without having to account for a spread.

Enhanced Liquidity:

A 0 spread might attract more market participants, contributing to increased liquidity. Higher liquidity can lead to better order execution and reduced price slippage.

Comparison between the Option spreads of various exchanges and Coincall

We selected BTC Call Options with the same Expiration Date （2023-12-15）and Strike Price （40000～42000）and compared the spread.

Currently, Coincall boasts the best Option spreads！

Additionally, trading always involves risks, and it’s crucial to conduct thorough research and analysis before making any investment decisions. Traders should be aware of other factors such as market conditions, volatility, and overall market liquidity, rather than solely focusing on the absence of a spread.