Cryptocurrency Q&A
Why trade futures instead of forex?
Why trade futures instead of forex?
Riccardo
Thu Jun 06 2024
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7 answers
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Could you explain the rationale behind trading futures instead of forex? What advantages does futures trading offer that forex doesn't? Are there specific market conditions or strategies that futures trading is particularly suitable for? And how does the risk profile of futures trading compare to forex trading? Additionally, are there any specific considerations or prerequisites for someone interested in getting started with futures trading?
7 answers
EthanTaylor
Sat Jun 08 2024
Spot trading in the realm of cryptocurrency trading stands out for its tighter spreads, providing traders with narrower price gaps between buying and selling. This feature, however, is accompanied by overnight funding fees, which can accumulate over time.
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Riccardo
Sat Jun 08 2024
For day traders seeking quick profits within a single trading session, spot trading offers an advantageous platform. The tighter spreads allow for more precise and potentially profitable trades, making it an ideal choice for active traders.
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KpopStarlet
Sat Jun 08 2024
In contrast to spot trading, futures trading exhibits wider spreads. This means that the price differences between buying and selling are generally larger, potentially increasing the risks involved.
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Lorenzo
Fri Jun 07 2024
Despite the wider spreads, futures trading does not incur overnight funding fees. This absence of additional costs can be beneficial for position traders who hold their positions for longer periods of time.
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Caterina
Fri Jun 07 2024
Position traders often adopt a longer-term perspective, seeking to capitalize on larger market movements rather than short-term fluctuations. Futures trading, with its wider spreads but no overnight fees, caters to this strategy.
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