Which derivative securities are commonly traded in the digital currency industry?
akbar_baregheDec 25, 2021 · 3 years ago1 answers
In the digital currency industry, what are the derivative securities that are frequently traded?
1 answers
- Dec 25, 2021 · 3 years agoDerivative securities commonly traded in the digital currency industry include futures contracts, options contracts, and perpetual swaps. Futures contracts allow traders to speculate on the future price of a digital currency without owning it. Options contracts give traders the right, but not the obligation, to buy or sell a digital currency at a predetermined price. Perpetual swaps are similar to futures contracts but do not have an expiration date. They provide leverage and allow traders to profit from the price movements of digital currencies. However, it is important to note that trading derivative securities involves risks and requires a good understanding of the market.
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