Where Spot Trading is a hunch, Option Trading is a numbers game. MobyTrader makes complex options easier and faster accessible for retail traders. And while it is statistically hard to ace all positions, a savvy trader keeps oversight due to MobyTrader’s unique mobile graphical interface.
What is MobyTrader
MobyTrader is designed for retail traders who specifically want to invest and earn a living, trading the financial markets. Paul B De Groot, CEO of MobyTrader, said: “This product is not a game. It's about making money by option trading”. MobyTrader is a Bitcoin derivatives Options trading platform that is accessible from Google and iOS App and Play stores. That is not to mean that trading is easy. It takes a lot of practice, a steep learning curve that takes time to perfect with shifty solutions.
There are over 300,000 users of the platform and through MobyTrader, they can confidently invest in small penny order size amounts denominated in milli-Bitcoin (mBTC), while earning up-to 30X of their investments as they trade with others. The platform is also scalable, processing over 4,000 TPS (transactions per second) and charges low commissions (up to 3%).
Paul B De Groot, CEO of MobyTrader, said: "Our aim is to enable retail users to make crypto money on a trusted financial crypto product, but with more graphical ease of use. For example, we are working with one of the largest btc option exchanges doing a volume of 500 million per day."
At the moment, traders trade against each other and the platform simply match orders, acting as an Options exchange. In the medium term, MobyTrader plans to launch an Options exchange, the Moby Crypto Option Exchange. In that way, orders will be based on a unique crypto index and orders matched and executed on an on-chain smart contract executed order book.
The application links aspiring traders to the world’s most liquid market: Bitcoin Option market. Novice traders who are still learning the ropes can experiment and fine-tune their skills via a free demo trading account. On the same vein, traders who wouldn’t want to expose themselves to huge market risks can commit to trade with small positions, roughly $5 on average, and still profit from market swings while covering themselves from deep losses.
MobyTrader is suitable for retail traders who love predicting BTC/USD price movements. Instead of HODLing and letting demand lift prices higher, the platform is an avenue for traders to benefit from high leverage—a route for better returns, while withdrawing profits faster. On average, each MobyTrader user posts over 300 orders between 0.7 and 15 mBTC ($5 and $100 equivalent). Over 245,000 orders are processed every month by the platform.
Getting started is easy. However, one exception is that BTC depositing and trading is barred for traders from Europe and USA. All they can do is practice using virtual currencies but not deposit. Also, the maximum BTC deposit is capped at $250 equivalent, while positions are in mBTC for fast execution. For fast execution, minimum withdrawal are 1mBTC to prevent exceeding mining fees.
MobyTrader offers some features including:
Fast Trade Execution
For Bitcoin traders who wish to profit from price fluctuation and want to trade milli-Bitcoins straight from their mobile phones, execution time matters. A lag can spell the difference between profits and losses. How fast a platform matches and executes an order matters during periods of heightened volatility. MobyTrader platform processes transaction faster, executing and settling posted traders in milliseconds. This is massively beneficial for option traders who have chosen short expiration times.
Traders can benefit from the deep liquidity of the no-break Bitcoin market. The Bitcoin market is open 24 hours, seven days a week, throughout the year. It’s a prime market that experienced, savvy traders can reap maximum profits throughout the year.
Event Notification and Limited Risks
The Bitcoin market is influenced by an array of different fundamentals. Events such as market interest rate changes or inflation readings can trigger volatility. MobyTrader users are notified of upcoming events allowing them to position their traders well in readiness of heightened volatility.
Access to Different Derivatives (Order Types)
You can hedge your risk within 1 expiration time or on multiple expiration times with 3 derivatives, Ranger, Inverse Ranger and Call-Put. Typical chances of striking the contract vary between 20%, 50% and 80% depending on the derivative and market chosen. Leverages are accordingly up to 3000%, 197% and 150% depending on the market. MobyTrader offers expiration times from 5 seconds to 1 hour, which covers almost 7 hours a whole trading day. This is a massive benefit, especially for traders on the go, as it gives them freedom to socialize and carry on with their ordinary, normal lives. Besides this deposits and withdrawals are automatic and instantly from and to your Bitcoin wallet.
The Composition of The Indexes
Trading on ultra-short expiration needs a very solid and precise index. MobyTrader uses indexes from 2 sources: Infront Finance (FX indexes, formerly VWD) and CryexMarkets (Crypto’s). In order to always provide a stable and non-spiked feed its essential to have a fixed ruleset.
Currently the CryexMarkets BTC index is made up from 7 sources of the latest prices from Bitstamp, Gemini, Bitfinex, Bittrex, Itbit, Coinbase and Kraken. From those exchanges CryexMarkets retrieves continuously best bid and best ask prices and calculates the mid-price. Then the highest and lowest price are taken out. If one or more of the feeds is not working or exchange(s) are disabled, the BTC index would be calculated 3 out of 5, 2 out of 4 or 1 out of 3 leaving highest and lowest value out of the index. When there are just 2 active feeds, both will be for 50% part of the Index. If there is just a single feed, this single feed will be the index.
If for some reason no single feed reaches CryexMarkets, the platform will be temporarily locked (trading disabled) until connection is re-established with one of the exchanges.
Trading is a mind game, a blend of technicality and psychology. That is why it is not a get-rich-quick scheme. A novice trader shouldn’t get too excited on their first win but realize that it will take time before perfection sets in. Before diving from the deep end, it is recommended that one starts by practising in an options trading simulator. That will help familiarize a trader and assist him/her comprehend trading and various tools that can be used for one’s own advantage.