The Bitcoin (BTC) market will have another source of risk – trading in options. The intention of derivative instruments is to hedge the risk for owners, or potential buyers. But trading option positions holds an additional risk of its own.
Bitcoin Options Exposure Expected to Grow Next Year
Options exposure is growing, as the markets already offer several tools on various types of exchanges. The mainstream Bakkt exchange has been offering Bitcoin (BTC) options since December 9, and the CME will start the product on January 13.
However, exposure is also growing on the dy/dx DeFi exchange, and other crypto-to-crypto markets. The growth of options trading may turn into a source of losses, especially given the volatile nature of BTC. OKEx also launched its options trading for BTC this December 27, linking it to one of the most active…
Click to continue reading on its source location…