[ANN] Coinut.com - The only Bitcoin Options Exchange [beta]

[wangxinxi]

if you tell your users that you use it when it is up, you must use it when it is up.  and you must not use it when the servers are down.  otherwise you are committing fraud.  it does not matter if their servers are intermittently up and down, you must keep update your index in realtime, which you are not doing.

Nobody is manually controlling it to make it up or down. It's the program itself that detects BTC-e.com is up or not. There is no manipulation here. You may have bought some puts so you complain here. But what if you have bought some calls? Everyone is experiencing the same problem. But this is  much better than using only one exchange, which then becomes a single point FAILURE.

[Indamuck]

Nobody is manually controlling it to make it up or down. It's the program itself that detects BTC-e.com is up or not. There is no manipulation here. You may have bought some puts so you complain here. But what if you have bought some calls? Everyone is experiencing the same problem. But this is  much better than using only one exchange, which then becomes a single point FAILURE.

The ideal solution, and the only real long-term solution, is to use a robust, respected third party index. Yes, you will likely have to pay some licensing fee, but it will raise the legitimacy of your product and help you grow volume. I work with some professional hedge fund managers ... and they wouldn't take this 'exchange' seriously until you've made these types of upgrades. You might look to add someone to your team who has direct experience launching & managing new products on a derivatives exchange. I know Singapore Exchange has been struggling to launch a number of contracts over the years ... some have gained traction while most have floundered. Still, the experience people gain developing and launching those products might be valuable to you.

Ideas are cheap, I know ... lol.

[wangxinxi]

Nobody is manually controlling it to make it up or down. It's the program itself that detects BTC-e.com is up or not. There is no manipulation here. You may have bought some puts so you complain here. But what if you have bought some calls? Everyone is experiencing the same problem. But this is  much better than using only one exchange, which then becomes a single point FAILURE.

The ideal solution, and the only real long-term solution, is to use a robust, respected third party index. Yes, you will likely have to pay some licensing fee, but it will raise the legitimacy of your product and help you grow volume. I work with some professional hedge fund managers ... and they wouldn't take this 'exchange' seriously until you've made these types of upgrades. You might look to add someone to your team who has direct experience launching & managing new products on a derivatives exchange. I know Singapore Exchange has been struggling to launch a number of contracts over the years ... some have gained traction while most have floundered. Still, the experience people gain developing and launching those products might be valuable to you.

Ideas are cheap, I know ... lol.

Just removed BTC-e.com. They are ridiculous today.

[CoinutScam]

if you tell your users that you use it when it is up, you must use it when it is up.  and you must not use it when the servers are down.  otherwise you are committing fraud.  it does not matter if their servers are intermittently up and down, you must keep update your index in realtime, which you are not doing.

Nobody is manually controlling it to make it up or down. It's the program itself that detects BTC-e.com is up or not. There is no manipulation here. You may have bought some puts so you complain here. But what if you have bought some calls? Everyone is experiencing the same problem. But this is  much better than using only one exchange, which then becomes a single point FAILURE.

It doesn't matter if anyone is intentionally manipulating it or not.  If you tell your users you will calculate the index one way, and then you actually calculate it another way, it is fraud, regardless of intent.  I am glad to see btc-e has been removed, as this will help fix the problem, but Indamuck is right.  No serious market maker will come close to this unless there is a verifiable third party index being used.  Because I am calculating the index much closer to real time, using sockets where available and polling every .2 seconds, and your index is usually very delayed.  This kind of misrepresentation of the actual index will prevent any legitimate institutional investing from occurring on your site

[wangxinxi]

if you tell your users that you use it when it is up, you must use it when it is up.  and you must not use it when the servers are down.  otherwise you are committing fraud.  it does not matter if their servers are intermittently up and down, you must keep update your index in realtime, which you are not doing.

Nobody is manually controlling it to make it up or down. It's the program itself that detects BTC-e.com is up or not. There is no manipulation here. You may have bought some puts so you complain here. But what if you have bought some calls? Everyone is experiencing the same problem. But this is  much better than using only one exchange, which then becomes a single point FAILURE.

It doesn't matter if anyone is intentionally manipulating it or not.  If you tell your users you will calculate the index one way, and then you actually calculate it another way, it is fraud, regardless of intent.  I am glad to see btc-e has been removed, as this will help fix the problem, but Indamuck is right.  No serious market maker will come close to this unless there is a verifiable third party index being used.  Because I am calculating the index much closer to real time, using sockets where available and polling every .2 seconds, and your index is usually very delayed.  This kind of misrepresentation of the actual index will prevent any legitimate institutional investing from occurring on your site

Thank you and Indamuck, we will definitely find a way for this problem and make the index unbeatable.

[CoinutScam]

CoinDesk has a pretty nice index, it seems to take into account many of the major exchanges, however it is only calculated every minute, I will post here if I find something better

[Indamuck]

Vanilla options, I've started playing with them today, and I have this question:

Does the margin formula provide for a maximum maintenance margin of 0.004 btc? Or does the (-out of the money portion) turn positive when the option is in-the-money?

I'm short some out-of-the-money contracts, and wondering how high my maintenance margin could go if the market moves against me.

Currently my margin requirement is about 0.0033 per contract. Can that rise to more than .004 under normal circumstances?

[chriswen]

Well there's quite a disparity between buying options and selling options.

When you're buying options you basically get 10x to 40x leverage without risk of margin calls. But you have to pay a premium.

When you're selling options you might be getting 5 to 15% 'interest'. Your profit is capped out. And you can't utilize a ton of leverage. But you get to capture the premium. I think options are low risk for low profit. That's because of the safe margin limits.

So while you might be able to get consistent gains by selling options, there is big potential for gains when you purchase options. And that's why the person selling gets the premium. And that's also why they need to put up more capital.

[chriswen]

I'll try to do some math on it.

Personally I've been shorting slightly in the money put contracts. (they're in the money). Maybe that's a bad idea. Also I'm leaving significant headroom which means I'm making less gains on trading capital.

[chriswen]

I haven't traded in a while but you seem to have reverted to the scroll bars.

[leancuisine]

My Bitcoin withdrawals has been processing for two days already, since July 29. Is there an approximate date for when it would be processed and sent?

[Indamuck]

My Bitcoin withdrawals has been processing for two days already, since July 29. Is there an approximate date for when it would be processed and sent?

Verify your details and send them to support@coinut.com


I've been using Coinut for several months, and have never experienced such a delay. Moreover they have been very responsive using the e-mail above. I expect you will have the same experience.

[Indamuck]

Andy,

For a reference index you might take a look at XBX maintained by Tradeblock: https://tradeblock.com/markets/index

Bitmex just told their customers (in chat) that they are preparing to adopt XBX and will make the switch soon.

[wangxinxi]

Andy,

For a reference index you might take a look at XBX maintained by Tradeblock: https://tradeblock.com/markets/index

Bitmex just told their customers (in chat) that they are preparing to adopt XBX and will make the switch soon.

It seems cool. I'll check whether this is reliable or not. Thanks.

[leancuisine]

Verify your details and send them to support@coinut.com


I've been using Coinut for several months, and have never experienced such a delay. Moreover they have been very responsive using the e-mail above. I expect you will have the same experience.

Sent them an email and they processed my withdrawals. Thanks for pointing that out.

[chriswen]

Andy,

For a reference index you might take a look at XBX maintained by Tradeblock: https://tradeblock.com/markets/index

Bitmex just told their customers (in chat) that they are preparing to adopt XBX and will make the switch soon.

XBX seems to have only hourly ticks. It could be useful for settling daily, weekly, and biweekly binary and vanilla option contracts.

I'm not sure if it's well suited for the 30 minute options. And you sort of want a live feed for that to show estimated index.

Actually if you contact them they might have the live XBX feed.

[Monopoly]

Do you give any leverage for trading ? how many is the maximum ?

[wangxinxi]

Do you give any leverage for trading ? how many is the maximum ?

Options themselves are already highly leveraged. You probably don't need additional leverage.

[chriswen]

Do you give any leverage for trading ? how many is the maximum ?

I would classify Binary options as quite leveraged. There's a lot of profit potential. While it's also capped at 100% profit that's a lot. And what's great is that unlike future contracts you can't get margin called with binary options.

Secondly there is vanilla options contracts. Vanilla options have leverage built into them when you buy them. They're non linear products which means their is low downside risk but your upside is unlimited. With Vanilla contracts you might be getting 5x-50x leverage. Also make sure you take the premium into account and how much the price needs to move to break even.

[onewiseguy]

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