Re:Professional Traders Show Interest in Bitcoin
by steve8918 on Sunday April 01, 2012 @11:17PM
(#3786120)
Put options? On Bitcoins?? Who is going to be the counter party to those options?
The reason why options work is because there are clearinghouses that will guarantee the transaction. Without a regulated clearinghouse, you're subjecting yourself to counterparty risk, which as we discovered in 2008, is a significant risk especially during market crashes.
The reason why options work is because there are clearinghouses that will guarantee the transaction. Without a regulated clearinghouse, you're subjecting yourself to counterparty risk, which as we discovered in 2008, is a significant risk especially during market crashes.