What are the advantages of using future and forward contracts in the cryptocurrency market?

1 answers

• Dec 15, 2021 · 3 years ago
  Using future and forward contracts in the cryptocurrency market has several advantages. First, these contracts allow traders and investors to hedge against price volatility, protecting their investments from sudden market changes. Second, future and forward contracts provide an opportunity for speculation, allowing traders to profit from price movements without owning the underlying assets. Lastly, these contracts offer leverage, enabling traders to control a larger amount of cryptocurrency with a smaller initial investment. However, it's important to use leverage responsibly and consider the associated risks.
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