For the real daredevils, there are more and more financial products around bitcoin to play with. The Delta Exchange offers a remarkable option: a bitcoin derivative up to no less than 200x leverage.
Please note: with bitcoin derivatives you basically trade with borrowed money. This brings with it an increased risk.
Derivatives Exchange Delta Exchange launches ‚turbo options‘ for bitcoin. The turbo options offer a lever construction of up to 200x. There is an additional option: you can sell your options if a certain price point is broken.
Pankaj Balani, the CEO of Delta Exchange, sees a gap in the market: „In traditional markets, turbo options are very successful. According to Balani, this is partly due to the fact that you can profit big with a relatively small amount of money.
However, these potential profits also involve dangers. In the event of major price movements, you quickly lose your money in the wrong direction. With the stop/loss option you can reduce the risks slightly.
These kinds of financial products are part of the bitcoin ecosystem, but these markets have little to do with the bitcoin network. You speculate on the price through these derivatives, but you do not buy real bitcoin. However, these options are initially paid for in bitcoin.
Balani: „These exotic new options for the industry can help to generate interest and participation in trading bitcoin options.
Such financial products are often confessed with suspicion by financial regulators and watchdogs. One of the largest bitcoin derivatives exchanges called BitMEX was sued earlier this month by, among others, the US Department of Justice.
The exchange does not comply with US rules; among other things, the platform does not gather enough information about their customers. In response to this news, traders massively withdrew their money from the platform: $420 million worth of Bitcoin from BitMEX.