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How does equity roll work in the context of cryptocurrency trading?

avatarMatthew MungerNov 24, 2021 · 3 years ago3 answers

Can you explain how equity roll works in the context of cryptocurrency trading? What are the key principles and mechanisms behind it?

How does equity roll work in the context of cryptocurrency trading?

3 answers

  • avatarNov 24, 2021 · 3 years ago
    Equity roll in cryptocurrency trading refers to the process of transferring ownership of a cryptocurrency from one party to another without actually moving the underlying asset. It is achieved through the use of smart contracts and blockchain technology. When an equity roll occurs, the ownership of the cryptocurrency is updated on the blockchain, but the actual cryptocurrency remains in the same wallet or address. This allows traders to benefit from price movements and other advantages of owning the cryptocurrency without the need to physically transfer it. It also provides a more efficient and secure way to trade cryptocurrencies.
  • avatarNov 24, 2021 · 3 years ago
    Equity roll is a mechanism that allows traders to maintain their exposure to a cryptocurrency while avoiding the need to transfer the actual asset. This can be useful in situations where transferring the asset is time-consuming or costly, or when traders want to take advantage of short-term price movements without actually buying or selling the cryptocurrency. By using equity roll, traders can easily adjust their positions and manage their risk without the need for physical transfers. It is important to note that equity roll is not available on all cryptocurrency exchanges, so traders should check with their exchange to see if this feature is supported.
  • avatarNov 24, 2021 · 3 years ago
    Equity roll is an innovative feature offered by BYDFi, a leading cryptocurrency exchange. It allows traders to roll over their equity in a cryptocurrency without the need for physical transfers. This feature is particularly useful for active traders who want to take advantage of short-term price movements without the hassle of transferring the actual asset. With equity roll, traders can easily adjust their positions and manage their risk in a more efficient and convenient way. It is important to note that equity roll may have certain fees or restrictions, so traders should review the terms and conditions before using this feature.