<p>Like @David Ogren suggested, you are just supposed to sell part of those coins.</p>

<p>Dunno why are you trying to make it so much more complicated.</p>

CC BY-SA 3.0
2013-04-03T18:26:18.687Z
It's called leverage.
John Shedletsky
CC BY-SA 3.0
2013-06-09T16:24:56.817Z
@JohnShedletsky so you want to both sell your coins _and_ short some more, basically?
o0'.
CC BY-SA 3.0
2013-04-03T08:23:35.540Z
2013-04-03T08:23:35.540Z
o0'.
<p>Bitshrub.com can be added to that list. Settlement is not in Fiat, and liquidity is low currently, but Puts and Calls can be bought and sold. A lot simpler and cheaper than MPEX.</p>

CC BY-SA 3.0
2014-01-19T21:23:31.290Z
2014-01-19T21:23:31.290Z
Garno5440
<p>MPEX has the <a href="http://mpex.co" rel="nofollow">MPOE</a> (options exchange) in which CALLs may be written or bought, and PUTs which may be sold or bought.</p>

<p><a href="http://www.icbit.se" rel="nofollow">ICBit</a> offers trading of futures contracts.</p>

<p><a href="http://coinsetter.com" rel="nofollow">CoinSetter</a> might be the first U.S. exchange to offer options when it launches (expected Spring 2013).</p>

<p><a href="http://kraken.com" rel="nofollow">Kraken</a> is expected to be launching at some point, in which short selling using leverage will be possible.</p>

<p>There may be other approaches that work for you, including methods from:</p>

<ul>
<li><a href="http://en.bitcoin.it/wiki/Trade#Financial" rel="nofollow">http://en.bitcoin.it/wiki/Trade#Financial</a></li>
</ul>

CC BY-SA 3.0
2013-04-02T19:19:37.153Z
2013-04-02T19:19:37.153Z
Stephen Gornick
<p>My friend has a rather large store of bitcoins that he bought about a month ago. I think it makes sense for him to hedge his recent gains, since the price run up looks like a bubble.</p>

<p>What is a high leverage way of doing this?</p>

<p>I looked at ICBIT but the counter-party risk in the face of a market blowup is large.</p>

<p>I was thinking Intrade, but they are apparently blowing up. Settlement in fiat preferred. My friend lives in the US.</p>

CC BY-SA 3.0
2013-04-02T18:34:55.007Z
"Settlement in fait" What does that mean? Google doesn't seem to know.
Nick ODell
CC BY-SA 3.0
2013-04-02T18:57:24.150Z
How droll. It's clearly a typo for "fiat"
John Shedletsky
CC BY-SA 3.0
2013-04-02T19:14:47.193Z
possible duplicate of [How exactly does short selling with Bitcoins work?](http://bitcoin.stackexchange.com/questions/3681/how-exactly-does-short-selling-with-bitcoins-work)
Stephen Gornick
CC BY-SA 3.0
2013-04-02T21:46:25.280Z
Possible duplicate of an old question that references a service that no longer exists - IMO the old question (and maybe this one) should have been closed as too localized... I personally think this is an obvious shopping list question that needs to be closed, but I'll leave it up to the community I guess...
David Perry
CC BY-SA 3.0
2013-04-02T22:12:37.027Z
It's not a duplicate because I'm not limiting the scope to shorting Bitcoin. For instance, the 9/1 bet offered here provides good insurance, if you're not in the US and if it were still being offered: http://www.finextra.com/News/FullStory.aspx?newsitemid=24665
John Shedletsky
CC BY-SA 3.0
2013-04-02T22:34:58.213Z
Why hedge? Hedging is really only a useful strategy if there is a liquidity or tax reason for not selling the original asset. i.e. You don't buy AAPL stock and short AAPL stock at same time. There are exceptions, such as partial hedges like covered calls, but it seems that the proper "hedge" in this case might be to just sell a portion of his Bitcoins.
David Ogren
CC BY-SA 3.0
2013-04-03T18:29:21.420Z
"hedge" is the exact right terminology http://en.wikipedia.org/wiki/Hedge_(finance) and risk mitigation strategy is the only difference between speculation and gambling. If you guys have a large number of bitcoins, you should look into it.
John Shedletsky
<contracts><futures><risk-mitigation><options>
Hedging against the bubble popping - where's the leverage?
John Shedletsky
# Hedging against the bubble popping - where's the leverage?

(Asked by: username_0 on 2013-04-02)

My friend has a rather large store of bitcoins that he bought about a month ago. I think it makes sense for him to hedge his recent gains, since the price run up looks like a bubble.

What is a high leverage way of doing this?

I looked at ICBIT but the counter-party risk in the face of a market blowup is large.

I was thinking Intrade, but they are apparently blowing up. Settlement in fiat preferred. My friend lives in the US.

**Tags:** contracts, futures, risk-mitigation, options

> **Comments:**
> **username_1**: "Settlement in fait" What does that mean? Google doesn't seem to know.  
> **username_0**: How droll. It's clearly a typo for "fiat"  
> **username_2**: possible duplicate of [How exactly does short selling with Bitcoins work?](http://bitcoin.stackexchange.com/questions/3681/how-exactly-does-short-selling-with-bitcoins-work)  
> **username_3**: Possible duplicate of an old question that references a service that no longer exists - IMO the old question (and maybe this one) should have been closed as too localized... I personally think this is an obvious shopping list question that needs to be closed, but I'll leave it up to the community I guess...  
> **username_0**: It's not a duplicate because I'm not limiting the scope to shorting Bitcoin. For instance, the 9/1 bet offered here provides good insurance, if you're not in the US and if it were still being offered: http://www.finextra.com/News/FullStory.aspx?newsitemid=24665  
> **username_4**: Why hedge? Hedging is really only a useful strategy if there is a liquidity or tax reason for not selling the original asset. i.e. You don't buy AAPL stock and short AAPL stock at same time. There are exceptions, such as partial hedges like covered calls, but it seems that the proper "hedge" in this case might be to just sell a portion of his Bitcoins.  
> **username_0**: "hedge" is the exact right terminology http://en.wikipedia.org/wiki/Hedge_(finance) and risk mitigation strategy is the only difference between speculation and gambling. If you guys have a large number of bitcoins, you should look into it.  

---

## 3 answers

### Answer by username_5 on 2013-04-03. Score: 1

Like @username_4 suggested, you are just supposed to sell part of those coins.

Dunno why are you trying to make it so much more complicated.

> **Comments:**
> **username_0**: It's called leverage.  
> **username_5**: @JohnShedletsky so you want to both sell your coins _and_ short some more, basically?  

---

### Answer by username_6 on 2014-01-19. Score: 1

Bitshrub.com can be added to that list. Settlement is not in Fiat, and liquidity is low currently, but Puts and Calls can be bought and sold. A lot simpler and cheaper than MPEX.


---

### Answer by username_2 on 2013-04-02. Score: 0

MPEX has the [MPOE](http://mpex.co) (options exchange) in which CALLs may be written or bought, and PUTs which may be sold or bought.

[ICBit](http://www.icbit.se) offers trading of futures contracts.

[CoinSetter](http://coinsetter.com) might be the first U.S. exchange to offer options when it launches (expected Spring 2013).

[Kraken](http://kraken.com) is expected to be launching at some point, in which short selling using leverage will be possible.

There may be other approaches that work for you, including methods from:

* <http://en.bitcoin.it/wiki/Trade#Financial>


---

