Quote from: mindragon on November 14, 2013, 05:02:30 PM

Quote from: Bullion333 on November 14, 2013, 04:13:22 PM

What about a BTC options trade or sorts, there must be some sort of financial product whereby you can hedge i.e go short and cover your long BTC exposure??

Like a BTC put option?

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Update; after a quick search on google I came across this: http://btclevels.com/ might be of interest or is there an alternative?

As soon as it is available, bitshares aims to do just that. Protoshares are being mined now for that. http://bitsharestalk.org/index.php?topic=13.0

I think there is something very interesting in the bitshares concept. Although I, and I think many other people, would like more of a "vanilla" solution. That is, a straightforward option ( call and put ) contract based on an aggregate strike price on Mtgox, bitstamp and other exchanges. The contract length should be for at least a few months - this is where btclevels.com falls down as the binary contract length is so very short. As bitcoin is unregulated and not traded on an open exchange the option premium should be low.

The price of BTC is so volatile as the currency matures people will absolutely need products like this to mitigate price risk. I am new in taking an active interest in BTC although have been aware of the currency since 2011 after reading a New Yorker article. http://www.newyorker.com/reporting/2011/10/10/111010fa_fact_davis

Personally I am really surprised their is not a product in that hedges bitcoin price risk??