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Race to Launch Crypto Derivatives Continues, Bitcoin Spreads Begin on Nadex
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Loading...Nadex, the North American Derivatives Exchange, has launched its own crypto derivative instrument, Nadex Bitcoin Spreads, for trading debut on Monday, giving folks bullish or bearish on the coin another regulated venue to bet against it in the short-term.
As the crypto futures have entered mainstream markets with Cboe and CME listing futures earlier this month, Nadex Bitcoin Spreads promise all the excitement within the sturdy walls of a regulated venue. The new contracts provide retail traders with a protection against unlimited losses without getting stopped out, whilst allowing them to bet on bitcoin’s rallies and drops with equal ease.
Nadex has allowed users to invest in the new market via smaller volumes, not requiring a larger down payment for trades relative to the standard required by futures exchanges. Specifically, Bitcoin Spreads contracts are smaller in size with a value of $0.10 per point, as opposed to the $1 or $5 per point with recently listed futures contracts.
At Nadex, trading members are required to make an initial deposit of at least $250, with no minimum balance is required thereafter.
While bitcoin prices constantly move to uncharted territory in the underlying market, the value of the new contract fluctuates within a floor-to-ceiling range, limiting traders’ downside risk while still giving them the ability to capitalize on bitcoin’s price swings.
Moreover, the contracts are cash settled, meaning investors will receive their final payment in cash rather than bitcoin. That also means that the Nadex doesn’t have to deal with the headache of setting up its own bitcoin wallet.
As cryptocurrency hype has reached peak levels, Nadex remains the only legal way to trade binary options and spreads in the US. The firm, which provides investors the opportunity to trade stock indices, forex, commodities, economic events and Bitcoin, is regulated by the CFTC as a Designated Contract Market and Derivatives Clearing Organisation.
Source: Finance Magnates
Trader Bozhidar Arabadzhiev
Original Post: Race to Launch Crypto Derivatives Continues, Bitcoin Spreads Begin on Nadex
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