Bitcoin options, the next battleground for encrypted derivatives?

李雪婷

读者

2019-11-06 02:43

This article is about 408 words, reading the full article takes about 1 minutes

Introduction to Digital Currency Derivatives - Bitcoin Options.

Produced by Odaily Research Institute

Editor | Hao Fangzhou

Produced by Odaily Research Institute

An option gives the holder the right to buy or sell an asset at a predetermined price at a specific time.

In the traditional financial market, options are mostly used by institutions as a risk hedging tool, and the early physical delivery options also endow exercise with more "practical significance".

As the cryptocurrency market followed the traditional financial development route, Bitcoin options were introduced by trading platforms such as BitMEX, Deribit, and JEX. The sharply fluctuating currency price endows Bitcoin options with certain hedging properties, but mapped to the digital currency market, speculation is just needed at this stage, and digital currency derivatives represent higher speculation and risk.

For trading platforms, supporting richer derivatives has become a new point of competition. However, for investors who have been in the currency circle for a long time, futures, leverage and other products basically meet the speculative needs, but options are not easy to use and not exciting enough. In the context of such an imbalance between supply and demand, where will Bitcoin options go?