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What are the short term interest rate futures for cryptocurrencies?

avatarThakur Dilaawar SinghDec 27, 2021 · 3 years ago1 answers

Can you explain what short term interest rate futures are in the context of cryptocurrencies? How do they work and what purpose do they serve?

What are the short term interest rate futures for cryptocurrencies?

1 answers

  • avatarDec 27, 2021 · 3 years ago
    Short term interest rate futures for cryptocurrencies are a type of financial contract that allows traders to speculate on the future interest rates of cryptocurrencies. These futures contracts are typically settled in cash and do not involve the physical delivery of the underlying cryptocurrency. The purpose of these futures contracts is to provide traders with a way to hedge against interest rate fluctuations and to profit from their predictions about future interest rate movements. By trading short term interest rate futures, traders can take advantage of potential profit opportunities and manage their exposure to interest rate risks. It's important to note that trading futures involves risks and traders should carefully consider their risk tolerance and investment objectives before participating in this market.