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jlakes85


Total Posts: 7
Joined: Oct 2020
 
Posted: 2021-01-05 20:00
I was curious to see which broker platforms are permitting trade in these at this point in time. TD Ameritrade seems to have a prohibition on trade of these for the foreseeable future.

TSWP


Total Posts: 454
Joined: May 2012
 
Posted: 2021-01-07 22:29
Interactive Brokers does not have them, at least until recently when I checked them (1 month ago).

jlakes85


Total Posts: 7
Joined: Oct 2020
 
Posted: 2021-01-09 16:56
Thanks TSWP. On TD Ameritrade I can see the option book, current implied vol e.t.c., but cannot pull up any order entry tickets, which is frustrating. I've always found that convenient during research to do a sanity check on capital requirements e.t.c., especially in this case where the spreads are huge.

nikol


Total Posts: 1276
Joined: Jun 2005
 
Posted: 2021-01-09 20:45
Trading shops trade crypto derivatives directly. Swiss FINMA is also quite permissive. Why CBOE?

... What is a man
If his chief good and market of his time
Be but to sleep and feed? (c)

TSWP


Total Posts: 454
Joined: May 2012
 
Posted: 2021-01-10 09:32
here they do have Bitcoin options, never used nor traded so I am just offering the info without much else attached...

https://www.ledgerx.com/

https://www.ledgerx.com/institutional

nikol


Total Posts: 1276
Joined: Jun 2005
 
Posted: 2021-01-10 09:47
Also (with options)
Deribit, Quedex (I m not affiliayed, but for completeness)

There are smaller ones, but they are MUCH smaller.

Futures and perps are everywhere. Crypto guys call perps as swaps. Very confusing. There are actual swaps (pioneer AirSwap).


... What is a man
If his chief good and market of his time
Be but to sleep and feed? (c)

jlakes85


Total Posts: 7
Joined: Oct 2020
 
Posted: 2021-01-10 16:09
Nikol, TSWP,

Thanks for the replies. The other platforms look interesting and I will have to check into them further.

nikol


Total Posts: 1276
Joined: Jun 2005
 
Posted: 2021-01-10 18:43
Just looked - Quedex has tiny volume.

Deribit developed nice concept of protection Fund, which is built-up from liquidated (bankrupted) accounts. You can span subaccounts and trade with them in isolation, they may default independently not hurting others. Cons is that they work only with crypto.

OKEX markets options as well - however, they are known for aug19 accident, when big loss due to hack was charged to clients account in pro-rata.

SPARROW gives no view without registration.

... What is a man
If his chief good and market of his time
Be but to sleep and feed? (c)

deeds


Total Posts: 497
Joined: Dec 2008
 
Posted: 2021-01-10 19:00
@nikol - is the 'got/could get hacked' discount (to what?!) somehow considered in pricing and visible through differences with trusts or other comparisons?

nikol


Total Posts: 1276
Joined: Jun 2005
 
Posted: 2021-01-10 20:11
I don't think so.
Spreads are quite competitive with respect to other venues. Deribit spreads are quite good.
However, I am sure, trading houses consider hack/collapse risk embedded in their holdings stored at various exchanges. These you can classify as subclass of credit risk.
Protection fund idea is not new. Clearing houses build it up with capital injections by each member of exchange. In case of Deribit, all participants are considered equal. By the way, in oct19 they had index miscalculation due to bug. Founders (brothers) decided to not roll back the book but have covered all losses (~10M) out from their pockets, while profits were retained as is. This had enormous reputational lift.

PS. Hack risk was always priced into discount of BTC value traded at the exchange = "fundamental" spreads between exchanges.

... What is a man
If his chief good and market of his time
Be but to sleep and feed? (c)
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