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What are the advantages of using future and forward contracts in the cryptocurrency market?
snigdha sudheerMar 28, 2022 · 3 years ago1 answersWhat are the benefits of utilizing future and forward contracts in the cryptocurrency market? How can these contracts help traders and investors?
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- Using future and forward contracts in the cryptocurrency market has several advantages. First, these contracts allow traders and investors to hedge against price volatility, protecting their investments from sudden market changes. Second, future and forward contracts provide an opportunity for speculation, allowing traders to profit from price movements without owning the underlying assets. Lastly, these contracts offer leverage, enabling traders to control a larger amount of cryptocurrency with a smaller initial investment. However, it's important to use leverage responsibly and consider the associated risks.Mar 28, 2022 · 3 years ago
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