23 Feb Futures Expiration: How To Prepare Your Trades
Extresure sluts of criticism: how to prepare operations
The world of cryptocurrency has exploded in recent years, with prices floating wildly and investors try to use these prices. However, one of the most important risks related to commercial cryptocurrencies is the potential for process data. If a future contract for cryptocurrency is going on, this means that the investor who has sold the activity to his latest market price no longer eliminates property rights and its accounts.
In this article, we will discuss the effects of the futures on the cryptocurrency and give guidelines for the preparation of operations to minimize losses and to maximize profits.
What is a future contract for cryptocurrency?
A future contract for cryptocurrency is an agreement between two parties to buy or sell an activity at a predetermined price at a certain time. In connection with cryptocurrencies, these contracts are generally exchanged on online platforms such as CME (Chicago Mercantile Exchange) or ICE (Intercontinental Exchange). These exchanges offer a number of cryptocurrencies, including Bitcoin, Ethereum and others.
When is a futures procedure for cryptocurrency?
The expiry date for a future contract for cryptocurrency varies depending on the specific activity and exchange. In general, most of the contracts are falling within 4 to 5 working days after the last market price. For example:
- Bitcoin -Futures: 4 weeks (21 days of trade) from the last market
- Futures Ethereum: 2 weeks (10 days of trade) from the last market
Consequences of the deadline
If a future contract for cryptocurrency submits, the investor who has sold the activity at its latest market price could have different consequences:
- Real estate loss : The investor no longer holds property rights.
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- Commissions and taxes : The investor can be subject to commissions and fees with regard to the cancellation of his own account.
Preparation of your exchange
In order to minimize losses and maximize the profit when a future contract is against cryptocurrency, the following strategies take into account:
- Fix the arrest positions : Reface the arrest orders to automatically sell an activity at a certain price if your value falls under a given threshold.
- diversifies your portfolio : diversify your wallet by investing in several resources and spreading through different exchanges.
- Monitor the market conditions
: Keep the market conditions in mind and regulate the size of the position accordingly.
- Use the financial leverage : Take into account the use of levers to strengthen your potential profits. However, note the increase in the loss of loss.
Best Practice
Consider the following best practices:
- Understand the risks : Understand that the process data is a calculated risk and do not guarantee success.
- Find the market : Search for the market and understand the risks associated with every activity and exchange.
- Use the technical analysis : Use the technical analysis to identify models and receive price movements.
- Stay informed : Stay informed about the news and trends of the market in order to make more well -founded decisions.
Diploma
The expiry of the futures for cryptocurrency is a considerable risk that can affect your investments. By understanding the effects and the preparation of the operations, it is possible to minimize losses and maximize profits. By setting up the stop orders, the diversification of your wallet, monitoring the market conditions and the use of the financial lever, you can navigate with confidence in the complex world of cryptocurrency trade.
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