Delta-Exchange Best Crypto Derivative Trading Platform

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Delta-Exchange Best Crypto Derivative Trading Platform

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A derivative is a class of financial contracts that derive their value from the performance of an underlying entity. Derivatives where this underlying is a cryptocurrency or a cryptoasset, e.g. Bitcoin, Ether etc are known as cryptocurrency derivatives. Trading of crypto derivatives does not entail actual buying or selling of bitcoins or any other crypto. The value of the derivative contract changed with the change in price of the underlying cryptocurrency and thus, trading derivatives in an alternative way to get exposure to the underlying cryptoasset or crypto currency – PowerPoint PPT presentation

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Title: Delta-Exchange Best Crypto Derivative Trading Platform


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Best Crypto Derivative Trading Platform NEW TO
CRYPTO DERIVATIVES ? NO PROBLEM! Try Our Mock
Trading Platform today! It works just like the
real one and lets you trade futures on bit.coin
altcoins
OVERVIEW A derivative is a class of financial
contracts that derive their value from the
performance of an underlying entity. Derivatives
where this underlying is a cryptocurrency or a
cryptoasset, e.g. Bitcoin, Ether etc are known as
cryptocurrency derivatives. Trading of crypto
derivatives does not entail actual buying or
selling of bitcoins or any other crypto. The
value of the derivative contract changed with the
change in price of the underlying cryptocurrency
and thus, trading derivatives in an alternative
way to get exposure to the underlying
cryptoasset or crypto currency . Types The
prominent types of derivative contracts include
futures, options, contracts for difference
(CFD), perpetual swaps and swaps. Derivative
contracts are traded both on exchanges and over
the counter (OTC). Exchange traded derivatives
are standardised contracts and are typically
very liquid. In contrast, OTC derivatives are
bespoke contracts between two parties.
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  • Uses
  • There are broadly, three categories for
    derivative use-cases. These are
  • hedging this is essentially getting insurance
    for adverse price movements of an asset you
    already own. For e.g. miners may want to lock-in
    the price of mined bitcoin without selling it,
  • speculation traders employ derivatives to create
    leveraged pay-off profiles based on their market
    view, and
  • access traders that are not able to buy bitcoin
    or cryptocurrencies directly could potentially
    gain exposure to them via derivatives.
  • Benefits
  • For traders/ investors, derivatives offer several
    benefits which are unavailable in spot trading.
  • These include
  • ability to go both long and short, i.e. profit
    from both rising and falling market,
  • leverage trading which enables a trader to take
    bigger positions and
  • strong liquidity which reduces the cost of
    trading.

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For more details visit https//deltaexchange.io/
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