Hedging

[xavier]

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?

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[cc5alive]

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."

[1.21gigawatts]

You can always hedge by selling a percentage of your holdings.  If it goes down, buy back in!

[TraderTimm]

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.

[FreeMoney]

bitoption.org 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.