What are the differences between futures contract and options in the cryptocurrency market?

1 answers

• Dec 15, 2021 · 3 years ago
  Futures contracts and options are two popular financial instruments in the cryptocurrency market. Futures contracts are binding agreements to buy or sell a specific amount of a cryptocurrency at a predetermined price and date in the future. They are commonly used for hedging or speculating on the future price of cryptocurrencies. Options, on the other hand, give traders the right, but not the obligation, to buy or sell a cryptocurrency at a predetermined price within a specific time period. They provide more flexibility compared to futures contracts, as traders can choose whether to exercise the option or let it expire. While both futures contracts and options have their own advantages and disadvantages, it's important to carefully consider your trading goals and risk tolerance before engaging in these derivative products.
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