In a press release the North American Derivatives Exchange or Nadex, a regulated online binary options exchange, has announced its plan to launch Bitcoin binary options contracts. According to the announcement, the organization will launch it in early December; however, this is subject to filing with the Commodity Futures Trading Commission.
Informing the traders Nadex release says that it will list the daily and weekly Bitcoin binary options contracts with prices based on TeraExchange’s Tera Bitcoin Price Index (“TeraBit Indexsm”), the global benchmark for USD/XBT contracts. Nonetheless, Nadex has seen strong consumer demand from retail traders looking for new ways to trade Bitcoin.
Timothy McDermott, CEO, Nadex said that Bitcoin binary options are an exciting way to participate in the Bitcoin phenomenon while limiting risk and according to him innovative short-term contracts from his company will provide a way to trade in a transparent, regulated market where the trader’s exposure is known before any transaction is executed.
He also added that innovative short-term contracts are especially valuable given the Bitcoin price volatility that has often been experienced in the marketplace. Now, similar to other binary options contracts on Nadex, investors can trade based on where they think the Bitcoin binary contract is heading using daily or weekly contracts.
Sharing his views with CEO of Nadex, Leonard T. Nuara, President and co-founder, TeraExchange said that since launching the TeraBit Index in September they have been approached by a wide array of financial services firms for this benchmark. He showed his pleasure on the launching of binary options trading.
TeraExchange is Trusted Services Provider
T. Nuara admitted that by working with Nadex to launch its Bitcoin binary options, they are thrilled to help make another regulated marketplace available to those looking to take directional views on Bitcoin. Nonetheless, as Bitcoin has emerged as an extremely popular digital currency that has seen increasing use and acceptance over the past five years.
According to the sources from Nadex, it selected the TeraBit Index for determining the Bitcoin price as the company realizes that it is the only price index that is calculated by a CFTC regulated firm, and the price index has already been thoroughly evaluated by the CFTC. Also, TeraExchange is a CFTC regulated trading platform for institutional market participants.
Nonetheless, as TeraExchange serves as both administrator and calculation agent of the index and its Bitcoin Price Index employs a dynamic algorithm that compiles and filters data on a real-time basis from a number of widely utilized global Bitcoin exchanges, it will provide valuable features for traders.
To contact the reporter of this story: Deepak Tiwari at email@example.com