Trade the popular digital currency, Bitcoin, without the risk of owning actual bitcoins
How can you trade Bitcoin without trading actual bitcoins? Nadex lets you trade the price of Bitcoin using binary options based on the trusted TeraBit® Bitcoin Price Index.
Since its introduction in 2009, Bitcoin has become a mainstream financial instrument. The US Treasury Department recognizes Bitcoin and more online retailers accept payment in bitcoins.
Most traders can't buy and sell bitcoins. Some are still wary, but many are curious about the new opportunity. Can you trade Bitcoin without the risk it seems to involve? Now, you can.
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Since its early days, Bitcoin has achieved price stability and been widely adopted. Still, many traders are wary of something so new and different, but want to participate in the Bitcoin phenomenon if they can have guaranteed limited risk.
That’s where Nadex comes in. Nadex created binary options based on the Tera® Bitcoin Price Index. It's a way to trade the price of Bitcoin, without buying and selling the bitcoins themselves.
You can trade daily and weekly Bitcoin binary options the same way you trade the Wall Street 30 (based on the Dow®) or the EUR/USD forex pair. You answer the question, "Will the Tera Bitcoin Index be above this price at this time, yes or no?"
You enjoy all the benefits of binary options on the Nadex exchange: limited risk, transparent price, and CFTC regulation.
Bitcoin Binary Option Example
A Bitcoin binary option asks the same simple yes/no question as any other. For example:
Bitcoin > 327.5 (3:00PM)
This means "Will the price of Bitcoin be above $327.5 at 3:00pm today? Yes or no?"
If you think yes, you buy the binary option. If you think no, you sell.
The price of the binary option is always between zero and 100. Let’s say the option is currently priced at 47.50 bid/57.50 offer. You buy at the offer price, sell at the bid, or place a limit order for a better price.
The binary option will settle at either 100 (if yes) or zero (if no). Your profit/loss is the difference between the settlement price (zero or 100) and the price you bought or sold at.
All Nadex Bitcoin binary options are settled by the last tick before expiration of the TeraBit® Bitcoin Price Index. Nadex offers daily and weekly Bitcoin binary option contracts expiring at 3:00PM EST.