Bitcoin options exchange with liquid markets

[AlgoSwan]

Why there is no BTC options exchange with well established markets and market makers? I know people don't understand the options concept. But if they once understand what is an option contract and how it can be applied on their existing long positions on BTC it would be an excellent new tool for traders and investors of all digital currencies.

[1715264010]

1715264010

[TReano]

Do you mean a broker service?

Check out http://btc-broker.weebly.com/ for some information about broker services which accept bitcoin.

[Superbitzz]

what does liquid means? is it means the flat currency. if it means flat currency then we have alot of option paypal and so much other options.

[AlgoSwan]

what does liquid means?

It means enough volume for better spreads on bid and ask prices.

[AlgoSwan]

Do you mean a broker service?

No. BTC options exchange means, CBOE (Chicago Board Options Exchange) like exchange for just cryptocurrencies.

[davis196]

Why there is no BTC options exchange with well established markets and market makers? I know people don't understand the options concept. But if they once understand what is an option contract and how it can be applied on their existing long positions on BTC it would be an excellent new tool for traders and investors of all digital currencies.

Two reasons, i quess:

1.Not enough market liquidity.Not enough buyers and sellers to create a marketplace.

2.No legislation.The government has to permit cryptocurrency trading with futures/options.

That`s just my opinion...

[deribit]

Somewhere in juli we expect to go live with a bitcoin options (and futures) exchange.
It will be european style options with cash settlement in bitcoin. Thus the platform only accepts bitcoin. It's possible to trade on margin. (with 1BTC capital you will be able to sell up to 10 BTC options)

It will be possible to place orders in BTC (the orderbook keeps orders in btc), but also volatility orders are possible from the very beginning, as well as "constant usd" price orders, where are platform continuously updates the order to track the Implied Volatility or the USD price given, based on the USD index calculated by the platform (average of 5 biggest USD exchanges). So basic market making is possible on the platform without any additional software by simply placing some volatility orders.

We have REST,Websockets and fix api with a matching engine with less than 1ms latency for placing orders.

Anybody who is interested in market making is welcome to contact us.

https://i.imgur.com/z21FEWx.jpg

[Patatas]

Why there is no BTC options exchange with well established markets and market makers? I know people don't understand the options concept. But if they once understand what is an option contract and how it can be applied on their existing long positions on BTC it would be an excellent new tool for traders and investors of all digital currencies.

That would happen if bitcoin was controlled/centralized.The markets which are estimating the prices right now are totally doing it from the trade volumes and public demand.Moreover,bitcoin as an asset is not taxable.Quite hard to make it commercial to a point where actually Boards will support it.

[deribit]

finally......There is a liquid (plain vanilla) options exchange operative now. Check out https://www.deribit.com/main#/options.
Our exchange went open for trading yesterday, and we are ourselves making a market..somewhat liquid...trying to make a start somewhere. We do our best to put tight quotes, but we need more traders for some price-discovery.

Options traded are european style cash settled in bitcoin and you can trade on margin. (sell up to 10 calls if 1 bitcoin deposited).
Futures can also be traded on the platform. We have not yet implemented portfolio margin. But its on our roadmap.

Cheers,
John (CEO Deribit)