Post
Topic
Board Economics
Re: Bitcoin Derivatives
by
itsAj
on 21/08/2014, 04:19:00 UTC
Are you looking for something like futures? If so then you might as well use margin trading (it really is the same thing as trading futures, with only technical differences), which is allowed at btc-e and bitfinex. If you are looking for options then you can try updown.bt which allows binary options on a number of markets.

How is trading on margin the same as trading futures?

Trading on margin is trading on borrowed money. Trading futures is making a bet one which direction the price of the investment will go in the future.
The amount of initial money that you must put up for collateral initially is generally the same for margin and futures trading. The amount you profit or lose is generally the same for the same chance in price for both margin and futures trading. The only real difference between margin and futures trading is that you can be forced to close a trade on margin if there is not enough money available to be borrowed, however this would also affect a futures trader because other traders would be forced to close their positions, likely causing the price to decline, causing your futures positions to decline in value. In short the only read difference between the two platforms is behind the scenes and will not affect you "on the front end"