NYXBT Announced By NYSE

In a press release dated May 19, 2015, the New York Stock Exchange, part of the Intercontinental Exchange ICE, announced the first exchange-calculated and disseminated bitcoin index, the NYXBT. This Index represents the U.S. dollar value of one bitcoin unit based on actual transactions occurring on select bitcoin exchanges which meet NYSE’s quality standards.

Bitcoin: Emerging Asset Class
Thomas Farley, NYSE Group President said, “Bitcoin values are quickly becoming a data point that our customers want to follow as they consider transacting, trading or investing with this emerging asset class. As a global index leader and administrator of ICE LIBOR, ICE Futures U.S. Dollar Index and many other notable benchmarks, we are pleased to bring transparency to this market. By combining our technology infrastructure with our expertise in index calculation and data management, we will continue to launch complementary products based on our rigorous standards and proprietary index methodology.” See NYSE Press Release

Rules-based
The link above also explains that the NYXBT Index relies on rules-based logic to analyze transactions making sure they are accurate and fair. It then gives the daily value of one bitcoin in U.S. dollars as of 16:00 (4:00 PM) London time. Shortly after that time, the NYXBT Index is then published and made publicly available. The image below is the fact sheet from the NYSE that contains all the details about the NYSE Bitcoin Index.

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To view larger image, click HERE.
This fact sheet explains that the Index calculations will be published within two hours following 4:00 PM U.K. time each weekday. It also tells that NYXBT Index is based off of the USD currency and published with four decimals being rounded on the last digit.
Bitcoin and Binaries
Bitcoin trading has been avoided by some traders because of its volatility which is actually what you want to use in order to take advantage of low risk binary contracts. Perhaps you did not know that you could trade Bitcoin with Binary contracts. In November of 2014, Nadex began offering Binary contracts on Bitcoin. To read about this, click HERE.

Nadex offers a 3:00 PM ET expiration daily Bitcoin Binary Contract which has 21 strike levels listed. The interval width between each strike level is 1.5. They also offer a 3:00 PM ET Friday expiration weekly Bitcoin Binary Contract which lists 15 strike levels. Settlement value is the same as regular binary contracts. Expiration value is the price or value of the Bitcoin just prior to the close of trading of the Bitcoin Binary Contract as reported by the Tera Bitcoin Price Index calculated by TeraExchange.

Volatility Used In Your Favor
As a trader, you know there must to be movement if you want to make money. Volatility causes movement so that would stand to reason that a volatile market can be something you can use in your favor. Everyone has heard about how wildly volatile Bitcoin can be. When you trade Bitcoin on the Nadex Exchange, you trade with limited, defined risk whether the market is neutral, flat or volatile. The following image shows four hour Tera Bitcoin movement over the last two weeks. It also has the 21 strike levels offered daily by Nadex.
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To view larger image, click HERE.

Having Bitcoin now available on NYSE as well as Nadex gives traders varied opportunities when trading this relatively new instrument. Several charts are available on the web to help you plan and execute your trades. If you would like to learn trading strategies go to www.apexinvesting.com, a service of Darrell Martin.