Crypto derivatives exchange development
Looking to create a new and reliable way to trade cryptocurrencies? Consider setting up a platform that supports derivative trading with experienced crypto developers.
Igor Tkachenko
Lead Blockchain Developer
The crypto derivatives market demonstrates resilience with every challenge it faces.
Our derivatives exchange development services open doors to the world of DeFi. You can explore new opportunities, reach untapped crypto holders, speed up transactions with smart contracts, and execute advanced strategies like shorting efficiently.
Let's look at the main types of crypto derivatives
CFD, known as Contract for Difference, stipulates that the buyer agrees to pay the seller the difference in the value of an asset from the time of the contract to the current value. CFDs allow traders and investors to make money from price changes without owning the assets themselves.
Crypto perps are a type of derivative called “futures.” They are great for investors who want to bet on the price movements of digital assets, whether going up or down. With leverage, crypto traders can increase their position size using a small amount of collateral. One more advantage is the funding fee, which can become additional income for long-term holding of positions.
Unlike crypto perps, these trading contracts are regulated agreements between two parties. They involve buying or selling an underlying asset on a specific date. Futures provide a way for investors to protect themselves against market volatility and guarantee the ability to buy or sell a specific cryptocurrency at a predetermined price in the future.
Options offer a cost-effective and risk-conscious approach to trading digital assets or commodities. Traders commonly use options to lower the risk of losses and avoid being forced to sell due to futures contracts. The buyer can either make the purchase or not on the agreed-upon date. Furthermore, the buyer can specify a particular time for the purchase.
You may also be interested in DEX development. Learn more here
Derivatives can be part of the following decentralized projects
Features of derivative exchange platform
An advanced admin panel allows for easy monitoring of user activities and transactions happening on the platform.
We can integrate your exchange platform with other trading order types, such as trailing stop orders, buy stop limit orders, trailing take profit orders, etc.
We always build with security in mind, using the latest encryption technology (SSl) to protect users’ funds and personal information. Moreover, we can add 2FA or Face authentication for an additional security layer.
Such a load balancer helps you to prepare for the huge demand of users, deciding which servers can handle that traffic. We can predict both load ups and downs and set up automatic platform maintenance by itself.
Leverage is another appealing aspect of derivatives. Derivatives trading requires a trader to put a small portion of the overall trade (10% or even lower). It allows users to make bigger investments than what would be possible with just their collateral alone.
The insurance fund is an important component of exchanges that offer leveraged trading. A substantial insurance fund ensures that traders can enjoy a seamless trading experience, even during periods of low market liquidity or high volatility.
Partial close is a handy feature that enables users to close only a portion of a trade while benefiting from the upward movement of the market. It’s especially useful when traders want to secure profits on the part of their position while leaving the rest open to capture additional gains.
Stop-loss and take-profit orders are tools that traders use to automatically close a trade when the price reaches a specific level. A take-profit order secures the profits by closing the trade at the target price, while a stop-loss order helps minimize losses by closing the trade if the price goes down beyond a certain point.
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Auto-deleveraging is a risk management feature that comes into play when a position is closed with a negative balance and the Insurance Fund cannot cover the losses. In such cases, the system automatically liquidates the trader’s positions based on profit and leverage, using the mark price when triggering.
Have decided on the features of a crypto derivatives exchange platform?
Contact us to discuss details and build an implementation plan.
INC4 as a crypto derivatives exchange development partner
Project delivered
80+
Professionals
60+
Since
2013
Clutch
5*
How we work process
This phase aims to bring everyone involved on the same page. Before starting Discovery, we get to know each other and define actual business needs and your personal expectations and how we can fit them.
The most important step is research. We don’t start coding at random; we conduct fundamental research and produce a comprehensive action plan to implement.
Still no development yet. After the research, we craft the product’s architecture and measurably think through the user flow. Only after designing the foundation can we move further.
Here is where the project appears. Blockchain engineers, Back-end and Front-end developers work in synergy to craft the best-in-class outcome.
No release is made without testing. We have a high-qualified QA team who test all the product peculiarities on testnet, devnet, and remote mainnet before going public.
We don’t launch projects and leave them. We are highly interested in projects’ success and continue to be involved in their growth by supporting products and developing new functionalities.
Blockchain networks we work with
Tech stack we use
Our clients will speak for us better
CEO, Yofan
Head of Operations, AirDAO
Co-founder, SpacemeshCreate a crypto derivatives platform that empowers customers to build outstanding investment portfolios
