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Author Topic: options trading  (Read 909 times)
trout
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April 30, 2011, 04:53:44 PM
 #1

with BTC rates doing what they do, I guess for any serious business to
start using bitcoin we'd really need option trading.
A business would want to know he'd be able to sell his BTC in say one month
at a known rate.

MtGox says that options are "coming soon", but they are not there.
May be some other exchange wants to fill the niche?
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ribuck
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April 30, 2011, 05:04:02 PM
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with BTC rates doing what they do, I guess for any serious business to
start using bitcoin we'd really need option trading.
For businesses, what you need is a third party enabler. Here's how it works.

Merchant's shopping cart displays the total (say $25), together with a bitcoin equivalent valid for one minute (say 7 BTC). If the customer pays 7 BTC, the enabler gets the Bitcoins and pays the merchant $25. No risk for the merchant that way. Most merchants don't want to mess with currency hedging.

Obviously the enabler needs to set their rates so that they make a profit. In a rising market, they can keep a "float" of Bitcoins, and make money on the rising value of their float in addition to what they make on their exchange rate margin.

This is a huge business opportunity for someone who does it right.
trout
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April 30, 2011, 05:11:25 PM
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For businesses, what you need is a third party enabler. Here's how it works.

Merchant's shopping cart displays the total (say $25), together with a bitcoin equivalent valid for one minute (say 7 BTC). If the customer pays 7 BTC, the enabler gets the Bitcoins and pays the merchant $25. No risk for the merchant that way. Most merchants don't want to mess with currency hedging.

This could work great for many.
But this way the merchant is much more exposed than he would be if he just traded in bitcoin and exchanged it once a month or so.

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April 30, 2011, 05:17:58 PM
 #4

The bitcoin stock market is launching in beta on Monday, this should be something that's totally possible to do on it.

see glbse.com

PGP key id at pgp.mit.edu 0xA68F4B7C

To get help and support for GLBSE please email support@glbse.com
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