Derivatives Overview

Hxro is building market protocols that specify the necessary functionalities to facilitate the trading and risk management of multiple financial product types. The network has initially focused its efforts on derivatives markets. Derivatives are a specific type of financial contract whose value depends on or is related to a reference asset, group of assets or an index. A derivative is generally a transaction agreement between two or more parties that can trade either on exchange or OTC (over-the-counter). Derivatives contracts allow traders to take speculative positions or hedge risk. The Network protocols are designed to support a wide variety of derivatives contracts including (but not limited to):
  • Futures - Perpetual futures and expiring futures
  • Standardized Options - Standardized European call and put options. These are options that you most commonly see on a traditional options exchange.
  • Exotic Options - Non-standard options that vary in their payoff structure, exercise terms and other contract components. Examples of exotics are One-Touch, Barrier, Knock-Out, Range and Bermudian options.