FTX US Plans To Add Options Trading To Complement Stock Trading Offering

FTX US recently added a stock trading service to citizens of all 50 states. The company is now eyeing adding options trading to its stock trades. Such service is big business for Robinhood.

FTX US launches more options trading

Following the expansion of stock trading throughout all 50 states in the United States, FTX US, the cryptocurrency exchange linked to Sam Bankman-FTX, Fried’s is preparing to enter the equity options market.

According to an interview with Bloomberg News, Brett Harrison, the president of FTX US, stated that the the company will add options without providing a specific timeline.

Harrison claimed that growing the offering while asset trading was slowing might help the company “capitalize that opportunity” in the event of a future bull cycle.

The launch of options, according to an FTX spokesman, is subject to regulatory review.

Options, which are financial contracts that allow a buyer the chance to acquire an asset at a defined price in the future, are employed as a tool for hedging underlying positions or for speculating on a particular asset.

Such offerings are big business for Robinhood, which is known for making profits from the controversial practice of payment for order flow whereby institutional trading firms pay Robinhood for offloading customer orders. 

At the peak of the market, Robinhood brought in nearly $70 million in options payment for order flow compared to $49 million in PFOF for trading in non-S&P 500 stocks, as per data compiled by The Block.

FTX, on the other hand, is not accepting payments for customer order flow. 

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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