ALL >> Business >> View Article
Best Crypto Derivative Trading Platform
Try Our Mock Trading Platform today! It works just like the real one and lets you trade futures on bit.coin & altcoins
OVERVIEW
A derivative is a class of financial contracts that derive their value from the performance of an underlying entity. Derivatives where this underlying is a cryptocurrency or a cryptoasset, e.g. Bitcoin, Ether etc are known as cryptocurrency derivatives. Trading of crypto derivatives does not entail actual buying or selling of bitcoins or any other crypto. The value of the derivative contract changed with the change in price of the underlying cryptocurrency and thus, trading derivatives in an alternative way to get exposure to the underlying cryptoasset or crypto currency .
Types
The prominent types of derivative contracts include futures, options, contracts for difference (CFD), perpetual swaps and swaps. Derivative contracts are traded both on exchanges and over the counter (OTC). Exchange traded derivatives are standardised contracts and are typically very liquid. In contrast, OTC derivatives are bespoke contracts between two parties.
Uses
There are ...
... broadly, three categories for derivative use-cases.
These are:
(a) hedging: this is essentially getting insurance for adverse price movements of an asset you already own. For e.g. miners may want to lock-in the price of mined bitcoin without selling it,
(b) speculation: traders employ derivatives to create leveraged pay-off profiles based on
their market view, and
(c) access: traders that are not able to buy bitcoin or cryptocurrencies directly could potentially gain exposure to them via derivatives.
Benefits
For traders/ investors, derivatives offer several benefits which are unavailable in spot trading.
These include:
(a) ability to go both long and short, i.e. profit from both rising and falling market,
(b) leverage trading which enables a trader to take bigger positions and
(c) strong liquidity which reduces the cost of trading.
For more details visit : https://deltaexchange.io/
Add Comment
Business Articles
1. Lucintel Forecasts The Global B2b Food Service Contract Market To Grow With A Cagr Of 4.9% From 2024 To 2031Author: Lucintel LLC
2. Lucintel Forecasts The Global Air Powered Vehicle Market To Grow With A Cagr Of 35.1% From 2024 To 2031
Author: Lucintel LLC
3. Lucintel Forecasts The Global Acetal Copolymer Market To Grow With A Cagr Of 5.7% From 2024 To 2031
Author: Lucintel LLC
4. Lucintel Forecasts The Global Absorbent Mat Market To Grow With A Cagr Of 3.4% From 2024 To 2031
Author: Lucintel LLC
5. Lucintel Forecasts The Global Absorbent Booms And Socks Market To Grow With A Cagr Of 9.7% From 2024 To 2031
Author: Lucintel LLC
6. Lucintel Forecasts The Global Abs Alloy Market To Grow With A Cagr Of 5.1% From 2024 To 2031
Author: Lucintel LLC
7. Interior Designing Of Shops And Stores
Author: Royal Interiors
8. Lucintel Forecasts The Global 1,4-butanediol Polytetramethylene Ether Glycol And Spandex Market To Grow With A Cagr Of 8.8% From 2024 To 2031
Author: Lucintel LLC
9. Saying Goodbye To Paper Cards Now
Author: Angus Carruthers
10. How To Get L1visa? Meeting The Qualifications And Knowing The Process
Author: Phoenix Business Advisory
11. The Role Of Automotive Oem Services In Modern Vehicle Manufacturing
Author: Arrowmfgauto
12. Lucintel Forecasts The Global Industrial Hydrofluoric Acid Market To Grow With A Cagr Of 3.4% From 2024 To 2031
Author: Lucintel LLC
13. Moulage Injection Belgique : Une Expertise Au Service De Pommeaux De Douche Innovants
Author: MOULDING INJECTION
14. Does Ppf Increase Resale Value In Dubai? Real Uae Market Analysis
Author: autoglowuae
15. Seek Maximum From A Reliable Virtual Receptionist Service
Author: Eliza Garran






