LedgerX’s Bitcoin Long-Term Equity Anticipation Securities Pegs at $10,000
- The company predicts that there is a 25% chance of Bitcoin crossing $10,000 by the end of 2018.
On Friday, LedgerX introduced its first Long-Term Equity Anticipation Securities (LEAPS). The contract is set to expire on the 28th December, 2018.
As per the terms set by the firm, the investors can buy the securities at $10,000 on that date, an almost 30 percent premium on today's price.
But unlike future Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, buyers are not obligated to purchase the asset. They only have to pay a price of $2,250.25 for the trade. So if by the end of the expiration date the price of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term is less than $10,000, the seller will only collect $2,250.25 from the buyer. But if it crosses the strike price of $10,000, the buyer gets to purchase the Bitcoin at the set strike price.
According to LeggerX’s analysis, there is a 25% chance of Bitcoin crossing $10,000 by the end of next year.
LEAPS are very popular in the options market. These publicly traded options contracts have an expiration date of over a year. The premium of LEAPS is usually placed higher as the more extended expiration period gives the asset time to make a substantial move and provide a good return.
Paul Chou, CEO of LedgerX, in an interview with Coindesk, said: “There will be, I expect, a lot more trades down the line. This is the first one, but it at least gives you the first guess from different institutional traders as to what bitcoin's dynamics will look like from now until 2018.”
Just a day later after the launch, two institutional investors agreed to the terms of LedgerX’s options contract.
On Friday, LedgerX introduced its first Long-Term Equity Anticipation Securities (LEAPS). The contract is set to expire on the 28th December, 2018.
As per the terms set by the firm, the investors can buy the securities at $10,000 on that date, an almost 30 percent premium on today's price.
But unlike future Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, buyers are not obligated to purchase the asset. They only have to pay a price of $2,250.25 for the trade. So if by the end of the expiration date the price of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term is less than $10,000, the seller will only collect $2,250.25 from the buyer. But if it crosses the strike price of $10,000, the buyer gets to purchase the Bitcoin at the set strike price.
According to LeggerX’s analysis, there is a 25% chance of Bitcoin crossing $10,000 by the end of next year.
LEAPS are very popular in the options market. These publicly traded options contracts have an expiration date of over a year. The premium of LEAPS is usually placed higher as the more extended expiration period gives the asset time to make a substantial move and provide a good return.
Paul Chou, CEO of LedgerX, in an interview with Coindesk, said: “There will be, I expect, a lot more trades down the line. This is the first one, but it at least gives you the first guess from different institutional traders as to what bitcoin's dynamics will look like from now until 2018.”
Just a day later after the launch, two institutional investors agreed to the terms of LedgerX’s options contract.