The trading platform Bakkt is planning the introduction of options on Bitcoin Futures. Investors have the ability to trade derivatives, Bitcoin derivatives.
By Christopher clover
On the 25. October 2019BTC$9.225,06 0.83%part Facebook Twitter LinkedIn xing mail
A day after the trade has been made, the volume for Bitcoin Futures from Bakkt a big jump, announces the launch of the trading platform another Bitcoin derivative. 7. December offers Bakkt in addition to Futures options on Bitcoin Futures. This is a Blog to refer to entry to a Medium, the Bakkt-Boss Kelly Loeffler on 24. October has been published.
The new Treaty is based on customer feedback and was designed to most Bitcoin course part of or Hedging operate to generate income, and cost and capital efficiency. ICE Futures U.S. has certified the contract with the CFTC and we are happy to make use of the Benchmark Futures prices and the [Bitcoin]custody, at an institutional level, in order to meet the requirements of a regulated options contract,
explains Loeffler.
Bakkt-Bitcoin-Future-options: derivative of a derivative
Bitcoin Futures
In the case of Futures – even futures contracts, called the buyer agrees to buy an Asset at a certain price and at a specified time (namely, at the end of the contract). At the same time, the obligation to purchase the securities that time to the pre-agreed price to the seller. In the case of Bakkt the underlying Asset to Bitcoin (BTC). The processing of the Bitcoin Futures at Bakkt “physically”. That is, after the expiry of the futures contract BTC change hands.
For comparison: In the case of Bitcoin Futures, the Chicago Mercantile Exchange (CME) at the Expiration of a contract, the difference between the purchase price and the price at the time of termination of the Agreement paid in cash (Cash Settlement). Bitcoin is used merely as an Instrument for price determination – it is to be completed in the case of CME, in a sense, pure rate bets.
options
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In contrast, the buyers of option contracts have the Name already indicates – to sell not a duty, but the right , to buy an underlying asset until the end of the contract period at a previously fixed price (Call Option) (Put Option). In the case of a Call Option, the buyer of the Option to the rising price of the underlying asset speculation. Conversely, the buyer of a Put hope the Option on a fall. The options that will offer Bakkt, using as a basis the value of not directly to Bitcoin, but the in-house Bitcoin Futures. Thus, the Bakkt options to a derivative of a Bitcoin derivative.
option premium
The price of an Option is also referred to as a bonus (a Premium). The premium is not fix. It is calculated from the intrinsic value of the Option plus the time value changes during the term of the option. The longer the fixed period, the more time the course has reached the desired threshold, the risk for the buyer of the Option is lower, the premium will be higher. An Option with a longer term will cost more and more, than the same Option with a shorter duration. The volatility of the underlying asset and the difference between the fixed execution price (Strike Price) and the current market price (Spot Price) influence the premium also.
According to the Loefflers Post the Bitcoin can-Futures-options – in contrast to the in-house Futures are also cash settled.
What is the impact of Bitcoin-derivatives such as Futures on the Bitcoin market can have lights editor-in-chief Sven Wagenknecht in his latest comment.
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