The North American Derivatives Exchange (NADEX) has just announced to its traders that starting today they can trade binary options on the price of the digital cryptocurrency, Bitcoin.
NADEX, IG’s CFTC regulated exchange, described bitcoins to its members as “one of the newest phenomena in the global financial markets,” and says that, at the venue, they can now be traded-on with “limited risk, short-term Bitcoin binary options.”
The exchange is seemingly trying to appeal to people that wanted to benefit from the opportunities raised by bitcoin’s price fluctuations but who were too afraid to expose themselves to the risks currently involved. NADEX tells users: “Trade where you think the price of Bitcoin is going using limited risk, short-term contracts in a regulated, transparent trading environment.”
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Last month, the firm was still going through legal due diligence needed before going live with such a product in the US. Speaking to Forex Magnates’ reporters, the company’s CEO Tim McDermott shared, “Nadex had to go through the steps required in developing any contract for listing on a regulated exchange. In terms of the process of filing with the CFTC, however, we had to submit the proposal formally prior to launch, but we have been in discussions with CFTC staff in advance of that expected filing.”
The new service is starting with daily and weekly bitcoin binary options contracts expiring at 3:00PM EST, with price quotes obtained from TeraExchange’s Tera Bitcoin Price Index (“TeraBit Indexsm”).
TeraExchange’s president and co-founder, Leonard T. Nuara, elaborated in the announcement last month, ”By working with Nadex to launch its Bitcoin binary options, we are thrilled to help make another regulated marketplace available to those looking to take directional views on Bitcoin.”