This month AnyOption, one of the bigger binary options brokers in the industry, followed the lead set by IG Group last month to become the second binary broker offering bitcoin binary options. To clarify, these are options where traders can speculate on the future value of bitcoin, the new digital currency that is rapidly gaining ground as an alternative to fiat currencies. Currently there are no binary options brokers that actually accept bitcoin as a method of payment. The bitcoin binary options offered by AnyOption vary slightly from their ordinary binary options in that the expirations are set slightly further off than most binary options. The One Touch feature is perfect for this as it allows traders to speculate whether bitcoin’s value with rise to or surpass a given mark within a set time, and with the volatility bitcoin has experienced of late it may be a very good candidate for an in-the-money trade. This addition to their asset list further legitimises bitcoin and gives some indication as to how interested the general public is in this new decentralised currency.
AnyOption’s decision to broker options on bitcoin is a solid indication that much of the industry is likely to follow suit. AnyOption currently has a pretty impressive market share, being recently listed as the second largest broker of “pure” binary options on the web. The unregulated broker continues to make forward strides despite having just taken a considerable hit in Italy where the Consob had the company on its list of binary brokers to have their ISPs blocked in Italy.
With bitcoin’s limited liquidity at present it would seem that the currency is far better suited for binary speculation rather than CFD-type derivatives, which means that binary brokers, or Forex companies currently opening binary brokering divisions, will have a palpable advantage should the interest in bitcoin continue its upward trend. The very fact that you are reading this article is a testament to the way bitcoin has managed to capture the popular imagination. In a statement made to the binary options press recently AnyOption cited the flexibility the company has in running their own proprietary platform rather than a white label one from TechFinancials or SpotOption like most of the rest of the industry does. This gives the company the ability to tailor the trades they offer to the specific requirements of the asset being traded, so it will not be too long before we start to see some very interesting binary options on bitcoin over and above the One Touch ones currently offered. Watch this space.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.