For anyone curious what the prices shown in the screenshots mean
http://www.igmarkets.co.uk/cfd/new-to-binaries.html
buying @50 it would mean IG is giving 50/50 odds on bitcoin hitting the strike price shown.
Topic: Just Logged onto Ig markets to check how silver and gold are going and saw... (Read 2555 times)
April 11, 2013, 09:26:07 AM
April 11, 2013, 08:37:18 AM
This kind of services start small, but it is something that the bitcoin economy needs to stabilise the price when it can be stabilised (ie. north of $1000). I am watching all these closely. The integrity of the service is the most important matter here, if your money is tied for any time in excess of 24 hours. Holding customers' money increases the risk of running away with it.
April 11, 2013, 08:26:34 AM
I think these are CFD's or contracts for difference.
In any case, I think we're headed back to $100 and then we will stabilise there for a few weeks before the next leg up.
In any case, I think we're headed back to $100 and then we will stabilise there for a few weeks before the next leg up.
They are not even CFDs they are binary options !
http://www.igmarkets.co.uk/cfd/bitcoin-binary-options.html
yea, binary options, thats the one
I really don't know too much about all these new instruments, just plain vanilla options and stocks has been my specialty.
April 11, 2013, 06:52:40 AM
I think these are CFD's or contracts for difference.
In any case, I think we're headed back to $100 and then we will stabilise there for a few weeks before the next leg up.
In any case, I think we're headed back to $100 and then we will stabilise there for a few weeks before the next leg up.
April 11, 2013, 06:08:55 AM
theres all the info they have on it on Ig.
"Contract"
Against a value displayed on a web site.
Only a fraction of a bitcoin needs to be traded above or below the limit for every bet to be settled.
Expect a massive DDOS on Mtgox at this time and date !
Question we all ask: Will they manipulate the price up... or down?
April 11, 2013, 05:22:04 AM
April 11, 2013, 04:54:21 AM
Yes, this is legit, I posted screenshots from my account yesterday.
By the way, the difference here from an option is that there is an obligation not an option to execute at strike price, and it costs you ~30% of your position to roll the bet into the next month.
By the way, the difference here from an option is that there is an obligation not an option to execute at strike price, and it costs you ~30% of your position to roll the bet into the next month.
April 11, 2013, 04:45:05 AM
Can this be verified by a member with 200+ posts?
April 11, 2013, 04:26:42 AM
Okay what am I looking at?
Options trading against future predicted values of BTC. Apparently they don't like the chances of BTC being above $450 by May 13th.
Are the odds only 3/1? I'd want about 20/1 to take that bet after yesterday.
It's not odds. If I'm reading that right (?) they are willing to sell you the option to buy 1 bitcoin at $450, for $5. As we get closer to May 13th, if the price is still below $450, the value of your option will go below $5. If it's above $450, it will be worth the difference - so if it hits $500 by expiry you'll get a $50 return for every $5 you spent on the $450 option.
Although with the $100 option going for $80, I'm not sure I am reading it right that they are options.
April 11, 2013, 04:24:14 AM
Okay what am I looking at?
Options trading against future predicted values of BTC. Apparently they don't like the chances of BTC being above $450 by May 13th.
Are the odds only 3/1? I'd want about 20/1 to take that bet after yesterday.
April 11, 2013, 04:21:09 AM
Okay what am I looking at?
Options trading against future predicted values of BTC. Apparently they don't like the chances of BTC being above $450 by May 13th.
April 11, 2013, 04:14:05 AM
Okay what am I looking at?
April 11, 2013, 04:07:42 AM
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