OKX has unveiled its new Nitro Spreads feature, allowing traders to make complex basis trades with just one click. Basis trading is the practice of trading the difference between an asset’s price on two different markets, such as spot and futures markets. With Nitro Spreads, traders can apply this feature to any combination of spot, perpetual, and futures contracts listed on the exchange.
In the current complex market environment, institutions demand reliability, predictable returns and genuine innovation when choosing a trading venue, said Lennix Lai, global chief commercial officer at OKX. This is especially true in basis trading, where precision and flawless execution are paramount.
Nitro Spreads is one of the few basis trading tools in crypto that allows traders to execute two legs of the trade via a central order book. Before making the trade, traders can select a guaranteed spread, reducing price slippage. Traders can place resting orders with a fixed spread – they don’t need to worry about immediate execution, said Lai. If the actual spread moves against their chosen spread, their orders will remain passive and not be executed.
The exchange’s Nitro Spreads product launched as a preview in May. It also allows traders to execute popular delta one spread strategies like calendar spreads, future rolls, and funding rate farming, all in order book format. Spread order book prices are generally more stable than outright books as the instruments are delta neutral, said Lai. We are working with a variety of liquidity providers to ensure that our users can trade effectively and take advantage of spreads.