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by noname123 4825 days ago
Anyone know if there is a good bitcoin futures/options market with good liquidity?

The vol on this asset class is out of this world and given that it's so new, pricing on these things must be so out of wack that it'll be good to exploit.

Only if there's a good futures exchange like Mt.Gox that's very very authoritative.

And also important for the bitcoin infrastructure, that way merchants will take bitcoins for less risk since they can hedge it against dollar or euro's. A big money potential out there. Some one please take the idea and build one so everyone can profit.

2 comments

Pre-requisite to derivatives is a functioning rates market, i.e. a forum for borrowing bitcoins.
ICBIT has futures trading. https://icbit.se/

Bitfinex allows margin trading and lending. https://bitfinex.com/

Ty for link ICBIT futures has no liquidity.

Bitfinex's current best lending rate is at 200% APY, or 0.54%/day with maximum lend-out window of 7 days. Making most futures and options delta-hedging trades, even if ICBIT had liquidity probably not profitable.

To compare, current US broker margin rate is 1.8% APY or 0.004%/day. Will stick to regular exchanges until this is fixed or if there is an ETF for BTC in regular exchanges.