Digital asset futures explanation

What is the futures contract?

Futures contracts are an essential part of traditional finance: it is a very complex financial product used by high-end or technical investors.

Investors, businesses, and governments use derivatives such as futures contracts to protect exposure to the risks and volatility of asset prices.

Derivatives are financial contracts that derive value from underlying assets.

Traditionally, derivatives are used in markets such as goods, currencies, stocks, or bonds. These contracts can be traded over the counter or through an exchange.

What is the digital asset futures?

In the digital asset industry, the futures market is a rapidly growing sector with trillions of dollars in transactions per month.

Like stock options or commodity futures contracts, digital asset futures provide protection against volatility and unfavorable price fluctuations in digital assets.

Digital asset futures contracts are also a proxy tool for investors to invest in the future price of futures assets. It can also be used to hedge digital asset price fluctuations.

Digital asset futures trading benefits.

Flexibility: Non-owners of digital assets can speculate on digital asset prices and make profits quickly.

You can open a digital asset futures contract position with USDT, and all profits are settled in USDT.

Leverage: Only part of the total cost can significantly increase exposure to certain digital assets.

Leverage can expand small price movements to generate reasonable profits for time and effort.

Liquidity: The digital asset futures market is a very fluid market with thousands of trillion won in trading volume.

In a fluid market, traders are less likely to enter and exit positions with minimal sleepiness.

Portfolio diversification: Transaction strategies can be diversified to generate more revenue.

Traders can develop complex trading strategies such as short selling, financial transactions, and pair trading.