UAE-based Bybit rolls out Dynamic Delta Hedging tool

By Shilpa Annie Joseph, Official Reporter
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Bybit launches Dynamic Delta Hedging
Rep. Image | Courtesy: Alesia Kozik @ Pexels

Bybit, one of the world’s top three crypto exchanges by volume, has launched its latest innovation, Dynamic Delta Hedging (DDH).

This cutting-edge risk management tool empowers institutions and professional traders, enabling them to navigate market volatility with precision.

Dynamic Delta Hedging offers automated adjustments that recalibrate the delta of traders’ portfolios every six seconds. This ensures that investments are continuously aligned with the traders’ risk tolerance and market movements, shielding against sudden market movements.

Ben Zhou, co-founder, and CEO of Bybit, said that, “Bybit’s Dynamic Delta Hedging is a boon for our institutional clients. DDH allows them to stay ahead of market trends, minimize risk, and enhance profitability with an ease never before seen in the crypto space.”

DDH functions by automatically executing buy or sell orders for Perpetual contracts at the market price on behalf of the trader. This seamless integration of technology and trading strategy ensures the delta of their Options contract remains precisely within the desired range, responding to market trends in real time.

Dynamic Delta Hedging Benefits;

  • Automated Adjustments: DDH adjusts the delta of your portfolio every six seconds
  • Risk Mitigation: DDH significantly reduces exposure to market volatility.
  • Enhanced Profit Potential: With the ability to capitalize on market trends promptly, DDH opens the door to improved profitability for traders.

The Dynamic Delta Hedging launch follows the recent launch of Solana (SOL) options by Bybit, making the exchange one of only two venues to host this product, allowing traders to better manage their SOL positions.

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