The Binance-owned crypto derivatives commutation, FTX, has introduced oil futures following the recent record crash in U.S. oil prices — which brutal every bit low equally minus-$40 on April xx.

FTX'southward contracts will elapse at the spot price of West Texas Intermediate, or WTI, plus $100 to protect against negative settlement prices.

The exchange notes that should the spot price of oil fall below minus-$100, "FTX OIL contracts "can theoretically expire negative."

FTX launches crypto-based oil contract trading

FTX comprises a top-ten ranked Bitcoin (BTC) futures exchange by both volume and open up involvement. The Binance-owned exchange is the largest to offer crypto-based oil contract trading.

The contracts are non available to account-holders residing in or with an IP address in the United States, Canada, or a number of other verboten locations.

Oil's volatility dwarfs cryptocurrencies

Despite being known for their volatility, cryptocurrencies have paled in comparing to the cost swings posted by WTI since March.

Volatility of Oil, Bitcoin, and Gold

Volatility of Oil, Bitcoin, and Gold: Woobull

The contracts volition trade until settlement, even if they are settled later on the expiration engagement has expired.

Derivative volumes spike in 2022

The first quarter of 2022 saw record trade volume posted by the crypto derivatives sector, driven by new marketplace entrants, Binance and FTX.

A report published past CryptoCompare earlier this month estimated that the combined market share of Binance and FTX grew from 14% in January to 22% in March amidst the dramatic crypto marketplace crash.

Binance saw the largest volume amid derivatives exchanges, with $2.8 billion in futures contracts changing hands during the violent sell-off.