Bitcoin Forum

Bitcoin => Bitcoin Discussion => Topic started by: xavier on June 10, 2011, 10:22:25 PM

Title: Hedging
Post by: xavier on June 10, 2011, 10:22:25 PM
Ok guys, after a day where the price of bitcoin has gone from 30 - 20, am I the only person who is thinking that this currency is so damn volatile!

Would it be useful for businesses working in bitcoins to be able to hedge against big currency movements? Maybe someone should organise some bitcoin forex derivatives?

Title: Re: Hedging
Post by: cc5alive on June 10, 2011, 10:28:57 PM
I think pretty much everyone agrees that Bitcoins are very volatile... nothing new there.

Mt Gox is working on some option trading arrangements with BTC. Still "coming soon."

Title: Re: Hedging
Post by: 1.21gigawatts on June 10, 2011, 10:50:50 PM
You can always hedge by selling a percentage of your holdings.  If it goes down, buy back in!

Title: Re: Hedging
Post by: TraderTimm on June 10, 2011, 11:49:58 PM
Yeah, the only hedge right now is going into your parent currency and then back into bitcoin.

Be interesting to see options pop up here.

Title: Re: Hedging
Post by: FreeMoney on June 10, 2011, 11:54:22 PM is just getting started. Eventually it should be liquid and you'll be able to buy the right to sell your coins at a certain price on a certain data. That would be buying a put; it's like insurance against the downside.