Since its inception, digital currencies like Bitcoin and digital finance have troubled governments and regulators across the globe. Some countries have chosen to classify these digital assets as legally recognized currencies because of their use by consumers, while other nations have chosen treat them as an illicit tool and banned their use outright. The United States is no exception to this legal scrutiny: the Internal Revenue Service has deemed Bitcoin is property, Obama released an executive order earlier this year allowing the government to seize digital currency without prior notice or due process, and most recently, the Commodities and Futures Trading Commision (CFTC) issued a statement that Bitcoin is indeed a commodity. This new decree is causing the legal teams of every major exchange in the space to scramble for regulatory compliance, lest they be forced to close doors like the unfortunate California based exchange Derivabit/Coinflip. One such firm has patiently awaited legal clarity regarding financial compliance and is preparing to go live.
Alt-Options is a Boston-based financial services company that offers a platform to trade Bitcoin derivatives in order to hedge risk and speculate efficiently. Their advance trading platform allows for scalability, as their exchange is not limited to a single derivative product or digital currency; additionally, their website is available in both English and Chinese Mandarin. The company has just released their public beta for paper trading and is filing paperwork to be compliant with the recent change in CFTC regulations.
Mining and Bitcoin storage is a risky venture due to price volatility. A financial option offers alternatives to miners selling their holdings by using the AOEX platform to either mitigate risk or gain extra income from selling contracts. Additionally, one can lock in the price they wish to buy or sell Bitcoin for a small premium. The AOEX platform attempts to mitigate price risk for its users in the safest way possible, by offering a wallet service that will be insured up to $250,000.
Likewise, the Alt-Options updated platform caters to the needs of seasoned option traders. A new, robust analyzer engine allows traders to back test their option trading strategy and related risk without committing to any positions. The P&L (profit and loss) graph and scenario analysis give user a clear expectation of their potential earning/loss from each potential trade.
Analytics Page Includes:
• Advanced profit and loss graph
• Sensitivity analysis on expiration date & underlying
• Real time portfolio Greeks & risk analysis
• Strategy analyzer (multi-leg positions)
Alt-Options is working with several partners in the Bitcoin space to hold a paper (mock) trading competition to test their platform. A number of organizations such as the College Cryptocurrency Network and notable universities (Boston University, Yale, Carnegie Mellon) have already signed up for this event to compete alongside professional traders. Participation is completely free and top winners will receive cash and other prizes. The competition will be held during the first week of October more info can be found here.
Sign up for Alt-Options Bitcoin Trading today.
*Content Provided and Co Authored By Carole Anne Vetter