common-close-0
BYDFi
Trade wherever you are!

What are the factors to consider when determining the contract size for cryptocurrency futures?

avatarTerp JosephDec 27, 2021 · 3 years ago1 answers

When determining the contract size for cryptocurrency futures, what are the key factors that should be taken into consideration?

What are the factors to consider when determining the contract size for cryptocurrency futures?

1 answers

  • avatarDec 27, 2021 · 3 years ago
    At BYDFi, we believe that determining the contract size for cryptocurrency futures should be based on a combination of factors. These factors include the volatility of the cryptocurrency, the liquidity of the futures market, and the trader's risk tolerance. Volatile cryptocurrencies may require smaller contract sizes to manage risk, while less volatile cryptocurrencies may allow for larger contract sizes. Additionally, the liquidity of the futures market should be considered to ensure ease of trading and the ability to enter and exit positions. Lastly, the trader's risk tolerance should be taken into account to ensure that the contract size aligns with their comfort level. Overall, it's important to carefully consider these factors when determining the contract size for cryptocurrency futures trading.