• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Ripple CTO Steps Down, Accepts New Offer – What You Need To Know
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Ripple CTO Steps Down, Accepts New Offer – What You Need To Know
Michael Saylor voorspelt: BTC koers naar $1 miljoen, crypto winter is voorbij

Bitcoin Options Trading Poses New Risks to the Market

Christine Vasileva
by Christine Vasileva
5 years ago
·
Posted in Bitcoin, News, News teaser
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

The Bitcoin (BTC) market will have another source of risk – trading in options. The intention of derivative instruments is to hedge the risk for owners, or potential buyers. But trading option positions holds an additional risk of its own.


Bitcoin Options Exposure Expected to Grow Next Year

Options exposure is growing, as the markets already offer several tools on various types of exchanges. The mainstream Bakkt exchange has been offering Bitcoin (BTC) options since December 9, and the CME will start the product on January 13.

However, exposure is also growing on the dy/dx DeFi exchange, and other crypto-to-crypto markets. The growth of options trading may turn into a source of losses, especially given the volatile nature of BTC. OKEx also launched its options trading for BTC this December 27, linking it to one of the most active futures markets. The Deribit exchange is also a source of European-style options, and is one of the leading markets.

$9.5MM in options exposure. 2020 is going to be a hell of a year.

Come gamble on options, guaranteed to lose your money but your affiliate fees go to charity:https://t.co/nCea2QzPwZ pic.twitter.com/fa4Mla4D3G

— light (@lightcrypto) December 30, 2019

Options should, in general, offer strategies to offset various price move risks. There are multiple complex options strategies used for stock price moves. The risk with bitcoin comes from the much smaller market.

Over the past years, futures trading saw traders liquidated after sharp BTC moves. Options may open similar risks, as some strategies may prove unsuitable for bitcoin price moves.

As with futures, there are the possibilities to trade options positions, without buying the actual underlying asset. The inherent risk in positions trading may create more complexity, especially with fast and unexpected BTC price moves.

Riskier Options Offered by Small Startups

The other risk will stem from smaller startups offering their own options types, where trading may be even riskier. The trending of options trading on larger platforms is also rekindling the interest in bitcoin binary options, perhaps one of the riskiest bets of all.

In this case, the options are a bet on which direction the bitcoin price would take. Making the wrong bet could lead to immediate losses, and in the case of BTC, price moves often happen within hours. Options also mean no chance of holding actual bitcoin, an asset that at least cannot be confiscated or liquidated.

There is no way to predict how fair or active the options market would be. Even large exchanges are currently building up their usage.

⬇️Global Listed BTC Option Open Interest more than halved after the Dec19 expiry.

📈How long will it take before reaching the same levels?

❓More importantly, what will be the split between venues at the same time next year, with Bakkt, CME and OKEx ready to challenge Deribit? pic.twitter.com/bnduBiPjYa

— skew (@skewdotcom) December 29, 2019

Other predictions are more pessimistic, seeing options trading as a tool to further tame the bitcoin price.

Bitcoin will never go to 1 Million (or even 100K for that matter),….why? Because of BAKKT Cash Settle Futures option on Bitcoin. If you don't believe that, just look at what has happened to the Precious Metals Markets with CASH Settled Options. No True Price Discovery.

— Cryptonaut (@Crypton09915373) December 30, 2019

While BTC could grow with no limits on the spot market, driven by bots and whales, options markets gather a new type of trader, interested in positions and not the long-term future of BTC.

What do you think about BTC options trading? Share your thoughts in the comments section below!


Images via Shutterstock, Twitter @LightCrypto @skewdotcom @Crypton09915373

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Christine Vasileva

Christine Vasileva

Follow

Christine Vasileva is a financial news and business writer, tracking the latest developments in fintech and the effect of blockchain and crypto-assets on global business and finance.

Full Profile

Related Posts

Tether wzmacnia rezerwy, kupując BTC warte miliard dolarów

Tether wzmacnia rezerwy, kupując BTC warte miliard dolarów

16 hours ago
Binance bitcoin

Binance Founder Triggers Bitcoin Bull Run Expectations With Cryptic Tweet

18 hours ago
Bitcoin

Historic Kimono Brand Changes Name To ‘Bitcoin Japan’ In Rebranding Move

1 day ago
crypto

Eric Adams, New York’s Crypto-Friendly Mayor, Won’t Seek 2nd Term

2 days ago
Bitcoin bull

Bitcoin Price Reaches ‘Critical Junction’: How A Rally To $139,000 Would Play Out

2 days ago
Bitcoin

Bitcoin Long-Term Holders Easing Off On Sales—What’s Happening?

3 days ago
Please login to join discussion

Premium Sponsors

Press Releases

  • най-добрите криптовалути

    Най-добрите криптовалути за...

    17 hours ago
  • As the Tapzi Fundraiser Continues to Generate Buzz, Could It Be One of This Year’s Best Crypto Presales?

    As the Tapzi Fundraiser Continues to Generate Buzz, Could...

    19 hours ago
  • 距離上線僅剩3周:Snorter代幣ICO融資突破 415...

    2 days ago
  • 上線倒計時:僅剩25天可搶購 Snorter Bot 代幣

    6 days ago
  • 加密錢包掀起發幣熱潮 Best Wallet...

    1 week ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.