Future cryptocurrency and premium basics of basics **
Although the cryptocurrency market continues to develop, commercial cryptocurrencies can be high -risk efforts. Among these various types of platforms, there are future transactions that allow merchants to get high profits or loss if they are not done correctly.
In this article, we will deepen the world of future cryptocurrency and explore the concept of premium in cryptocurrency markets. We will also discuss how to understand this critical aspect of cryptocurrency trade.
What is a cryptographic future agreement?
The future cryptocurrency agreement allows buyers and sellers to agree on a certain price of a particular cryptocurrency price on a future day called “strike” or “term”. The difference between the price of the offer (buy) and the question (sell) means a prize that can be profit if it is done correctly, or losses otherwise.
How does Premium work?
Imagine buying 100 Bitcoin units for $ 10,000 with a future transaction agreement, which is valid within six months. The price of the offer is set by the exchange and is currently $ 9,500 per unit. However, there are also sales orders that can be filled for $ 9,800 or more for this price. In this scenario:
* The bid bonus:
The difference between the offer ($ 9,500) and ASK ($ 9,800) is a $ 300 prize.
* Ask Premium: If you want to sell $ 100 for $ 10,000, your sales order would be filled for $ 9,900, so the query request will be $ 200 (sell).
Premium types
There are two main types of prizes:
1 is essentially a diffusion created by market forces.
2
Factors affecting the award
Several factors can affect the prizes of future cryptocurrency contracts:
* volatility
: Higher volatility leads to larger prizes due to higher negotiation activities.
* Trade volume : The most active market participants increase prizes by competing for better operations.
* Ordering Flow : Ims of the order flow between the purchase and sale orders can create the highest level of differences.
How to prevent trading with Premium
To mitigate the risk, operators should be aware of the following strategies:
1
2
3
Conclusion
Understanding the prize in cryptocurrency markets is necessary to make reasonable trade decisions. Understanding the basics of future contracts will be better prepared to browse these complex financial instruments. Remember to remain disciplining and apply your strategies when market conditions develop.
Although the cryptocurrency market continues to grow and mature, it is very important to remain educated due to the complexity of the prize in order to minimize income, reducing losses.
