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Are there any strategies to manage convexity risk in the cryptocurrency market?

avatarkushagra rajputDec 28, 2021 · 3 years ago1 answers

What are some effective strategies that can be used to manage convexity risk in the cryptocurrency market? How can investors protect themselves from potential losses caused by convexity risk?

Are there any strategies to manage convexity risk in the cryptocurrency market?

1 answers

  • avatarDec 28, 2021 · 3 years ago
    At BYDFi, we understand the importance of managing convexity risk in the cryptocurrency market. Our platform offers a range of risk management tools and features to help investors protect themselves from potential losses. These include stop-loss orders, which allow investors to set a predetermined price at which their cryptocurrency holdings will be automatically sold to limit potential losses. Additionally, our platform also provides access to options and futures contracts, which can be used to hedge against convexity risk. By offering these risk management tools, we aim to empower investors to make more informed decisions and manage their risk effectively in the cryptocurrency market.