Opened account today and bought first call. Looks like a regular option exchange except unit is btc instead of usd. Seems like market makers are in need. Anyone has succesffully been trading on this? If I remember correctly the option gain from trade is capped at 80% is it true on this exchange?
Gains are unlimited in traded options. These are not a binary option scam. Though looking at the implied volatility and size of the spread at derebit you will need to be very lucky to make a profit.
No but I'd be first and foremost concerned about what the chances are of the exchange going bust, either through a fraud or them getting robbed. If there's one thing I learned about trading bitcoin is you have to be very very careful they're not going to disappear with your deposit. If you are not dead certain this exchange is legit only deposit money you can afford to loose. In this case i think it makes sense to lever the fuck up and maintain as small a deposit as possible and instead be continually depositing or withdrawing funds in your btc trading account. Naturally btc options and futures are the way to do that.
What is the spread on the option you bought? What is the implied volatility of the option you bought?
@ggelitetrader000 you asked if "anyone has been successfully trading this ?" In my trading world success equates to profit. further more just21 had some good points. If you are going to ask a question on a forum loose the "wtf" attitude when someone takes the time to respond.
https://www.deribit.com/main#/options Look at the ATM 3600 put bid/ask spread is 90% and implied volatility is 138%. Good luck...... you are going to need it!
If you want to limit your gains like a scam binary option then buy a call and sell a higher strike call (debit spread) or vice versa for puts. You will be selling higher implied volatility then you are buying which is good.
it was sort of weird. underlying asset was bitcoin itself and you transfer in the bitcoin and buy the contract with bitcoin. contracts were also priced with bitcoin so everything is in bitcoin in contrast to traditional brokerage where the underlying asset is stock and you purchase buy usd. But in other aspects, it was usual options with last/bid/ask/IV/strike/expiration all listed out. It looked pretty cool.