What are the factors that determine the tick size for cryptocurrency futures?

1 answers

• Dec 19, 2021 · 3 years ago
  The tick size for cryptocurrency futures is determined by a combination of factors. Firstly, the exchange where the futures are traded sets the tick size based on their own rules and market conditions. Different exchanges may have different tick size requirements, so it's important to check the specific exchange's guidelines. Additionally, the volatility of the underlying cryptocurrency can also impact the tick size. More volatile cryptocurrencies may have larger tick sizes to accommodate their price movements. Lastly, regulatory requirements can also influence the tick size for cryptocurrency futures. Some jurisdictions may have specific regulations regarding tick sizes for futures contracts. It's important for traders to be aware of these factors when trading cryptocurrency futures to ensure they understand the tick size and its implications.
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