Understand the mechanics of futures trade in cryptocurrencies
The world of cryptocurrencies has exploded in recent years, with fired and fallen prices at a fast pace. One of the most popular forms of trade of these digital assets is the futures trade, but what are exactly cryptocurrencies and how do they work? In this article, we will break down the mechanics of the futures trade in cryptocurrencies, including key concepts, strategies and risks.
** What is a cryptocurrency?
Cryptocurrency is a digital or virtual currency. The best known cryptocurrencies are Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC). The network,
** How does the futures trade in the cryptocurrency work?
Future trade implies speculating on the price of a cryptocurrency before it really is negotiated. There are two main types of futures contracts: spot and forward. Spot contracts involve or the sale of cryptocurrencies in their current market
KEY CONCEPTS IN THE TRADE OF CRIPTOMONED FUTURE
- This is because the New York Stock Exchange (NYSE), Nasdaq and Binance are based in the United States.
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. Market orders are executed immediately, while the limit orders cannot be executed until the market reaches the specified price.
- Margin requirements : Margin requirements vary according to the exchange and balance of the operator’s account. Some exchanges require merchants to maintain a margin ratio of 2: 1 or more.
Strategies in the Cryptocurrency Futures Trade
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- Scalping
: The scale implies making multiple small small exchanges
Risks in the trade of cryptocurrency futures
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- Liquidity risk : Liquidity suppliers cannot always meet orders at the desired price, which leads to liquidity risk.
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Tips for beginners
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- Realistic set Set : Understand that cryptocurrencies are subject to significant price changes and do not guarantee yields.
- Start with a small account :