A form of synthetic trading, the new binary options will offer wagering on the short term direction of Bitcoins and Litecoins. Unlike traditional traded options which have a variable outcome that is derived from the price of the underlying asset, with binary options, potential payouts are fixed at the time of opening the trade.
As such, due to the win or lose outcome, binary options are often tied closely with online gambling products, with operators of binary options brokers coming from both the world of finance as wells as gaming. Among its largest clients that use its white label binary options platform product are CedarFinance and OptionBit.
The currency of the future is gaining increasing popularity in the financial world. There are also multiple CFD providers such as eToro and Plus where all deposits and withdrawals are done purely in fiat. Those wary of holding digital currency itself, fearing for its binary options litecoin amid stories of exchange failures and hackings, may find such options more appealing.
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