Thursday, September 29

5 Ways Derivatives Could Change The Cryptocurrency Industry In 2022 By CoinTelegraph

5 Ways Derivatives Could Change The Cryptocurrency Industry In 2022

We’ve all heard stories of multi-billion dollar futures contract settlements that are the cause of 25% intraday price drops in the price of () and Ether (ETH), but the truth is that the industry has been plagued with 100x leverage instruments since BitMEX launched its perpetual futures contract in May 2016.

The derivatives industry goes well beyond these retail-driven instruments, as institutional clients, mutual funds, market makers, and professional traders can all benefit from using the instrument’s hedging capabilities.

In April 2020, Renaissance Technologies, a $ 130 billion hedge fund, was given the green light to invest in the markets using instruments listed on the CME. These trading giants are nothing like retail cryptocurrency traders, instead focusing on arbitrage and non-directional risk exposure.

Read the full article on Cointelegraph

Legal warning: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Reference-es.investing.com

Leave a Reply

Your email address will not be published.