LXDX, a recently launched crypto derivatives exchange, has announced that the first of their derivative products—LXDX Warrants—are now available for trading. The LXDX exchange seeks to provide investors access to institutional liquidity with products that are not available anywhere else. The exchange first opened for spot trading in December 2018.
LXDX Warrants allow investors to trade more when they have high conviction and short sell volatility products when the market is expected to remain calm, tempering market exuberance. LXDX warrants provide investors the opportunity to achieve much higher returns with only a fraction of the capital required by spot trading. Furthermore, derivatives, combined with the ability to hedge, help institutions succeed in running more active strategies.
The LXDX exchange does not socialize losses or engage in auto-deleveraging, so individual investors never bear the burden of collective risk. The ability to trade derivatives with no socialized losses has never existed in the market before and creates an opportunity to facilitate more trading in the ecosystem globally.
Other exchanges facilitate volume through socialized losses—offering unnecessarily high leverage and forcing the user base to shoulder the risk. Cautious investors become the unknowing insurers for those taking extreme risks. All the while the exchange collects massive fees at their expense.
“Institutional investors find socialized losses unacceptable because they eradicate a derivative’s value as a hedge. Institutional investors simply won’t invest if socialized losses are present. Retail investors should be no different. Our mission with LXDX is to make trading in these markets much better by leveling up the infrastructure and passing on the profit—not the risk—to investors,” said Joshua Greenwald, CEO, and co-founder of LXDX. “As we raise the bar and our expectations of our trading venues, the whole system grows. LXDX is the exchange for the million token future and all of the opportunity that it creates.”
LXDX was developed by a team with decades of experience building trading infrastructure for traditional capital markets, at places like Tower Research, DRW, and Laurion Capital. Their mission is to bring innovative financial products to retail crypto investors, providing access to the same speed and scalability that institutional investors enjoy in traditional markets.
“We believe that crypto traders deserve the same caliber of technology that institutions have enjoyed for years. That means lightning-fast trades and a variety of options to capitalize on volatility,” said John Hazen, CFO, and co-founder of LXDX. “So, we built it.”
The LXDX platform is written in highly optimized C++ and runs exclusively on their custom-tuned hardware out of Equinix data centers.
“LXDX is built to a standard of reliability and speed that is unparalleled in today’s crypto market,” said Steven Thomas, CTO, “This starts with the technology, and having the right team to execute on it. I can say with confidence that we have both, and from the beginning, we have taken the time to make sure that every investor gets access to the exchange experience of the professionals.”
The exchange offers true colocation and tick-by-tick data. Orders are pushed through the entire system in single digit microseconds, so that individual users can execute millions of trades per second across thousands of securities, even in choppy markets.