In an article titled Will eToro Offer Bitcoin Trading? MtGox Resumes Trading last week, we added in the comments “After thinking about this a little more, we’ll probably see a binary provider come out first with a bitcoin option. They could keep it small at the beginning, $25 limit or something and price is with a $2 spread and then adjust their risk settings as it evolves and they see how trading goes. The binary payout though would control their potential losses.”
The theory was ‘on the ball’ as leading CFD and Forex broker, IG becomes the first broker to offer bitcoin trading in the form of a binary bet. Bitcoin trading is available for both spread betting (IG Index) and Forex/CFD accounts (IG Markets). The new option is priced on a 0-100 measure based on IG’s predicted price for bitcoins on the MtGox exchange on May 31st. The binary option will be available for continuous trading until the expiration time and is available in £10 trading increments. With synthetic bitcoin trading now officially becoming available among forex brokers as a binary option, the next question for traders is who will be the first firm to provide the product as a continually traded leveraged CFD?
The UK’s leading CFD and spread betting provider* has started offering a limited risk binary on the popular digital currency, Bitcoin.
IG, a world-leading CFD, spread betting and forex provider, has introduced a new market enabling its clients to take a position on the value of the popular digital currency, Bitcoin.
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Binary bets and binary options are a straightforward way of taking advantage of volatile markets- the price of one bitcoin has moved from $13.50 in January to $266 in April and has since fallen back.
Binaries take the form of a ‘yes/no’ question, meaning a client simply chooses whether to ‘buy’ or ‘sell’ if they agree or disagree with IG’s predicted price levels for Bitcoin.
IG chief executive, Tim Howkins, commented: “While Bitcoin is still a relatively new phenomenon it has surprised many in the financial markets with its popularity. We’re delighted to offer our clients the opportunity to benefit from its price fluctuations using a binary – while limiting their risk exposure”.
To find out more visit: http://www.igindex.co.uk/spread-betting/bitcoin-binary-bets.html
About IG Group
IG Group is a world-leading provider of financial spread betting, contracts for difference (CFDs) and forex. Founded in 1974, IG Group is an established member of the FTSE 250 with headquarters in London and offices across Europe as well as in the US, Japan, Singapore and Australia. Visit: http://www.iggroup.com