What categories of cryptocurrency derivatives?
Cryptocurrency derivatives can be classified into the following categories:
- Futures Contracts: Cryptocurrency futures contracts allow traders to buy or sell a certain quantity of cryptocurrency at an agreed-upon price on a specific date in the future.
- Options Contracts: Cryptocurrency options contracts grant traders the right, but not the obligation, to buy or sell a certain quantity of cryptocurrency at a specified price on a future date.
- Exchange-Traded Funds (ETFs): Cryptocurrency ETFs are investment instruments that track or hold a diversified portfolio of cryptocurrencies and are traded on exchanges.
- Margin Trading: Margin trading allows traders to engage in cryptocurrency trading using borrowed funds, amplifying potential profits but also increasing risks.
- Options Trading: Options trading involves the buying or selling of the right to purchase or sell cryptocurrencies at a specific price within a defined time period.
- Contract for Difference (CFD): Cryptocurrency CFDs are derivatives that enable traders to speculate on price movements without owning the underlying cryptocurrencies, trading on the difference between the entry and exit prices.
Disclaimer:
Information content does not constitute investment advice, investors should make independent decisions and bear their own risks
Information content does not constitute investment advice, investors should make independent decisions and bear their own risks