Cryptocurrency Q&A
What are derivatives in simple words?
What are derivatives in simple words?
BlockchainMastermind
Wed Jun 05 2024
|
6 answers
1482
Could you please explain in plain English what derivatives are? I've heard the term often in finance but it still seems quite mysterious to me. Could you break it down into simple terms and maybe give an example or two to help me understand? I'm particularly interested in how they work in the realm of cryptocurrency and finance. Thanks in advance for your clarification!
6 answers
Valentino
Fri Jun 07 2024
BTCC, a UK-based cryptocurrency exchange, offers a range of services related to derivatives trading. These services include spot trading, futures trading, and wallet management.
Was this helpful?
121
29
Alessandra
Fri Jun 07 2024
Derivatives are financial instruments that derive their value from an underlying asset or a set of assets. They represent a contract between two parties, with the value of the derivative fluctuating based on the performance of the underlying asset.
Was this helpful?
398
53
CryptoTitaness
Fri Jun 07 2024
Common underlying assets include stocks, bonds, currencies, commodities, and market indices. These assets' value is subject to market conditions and can fluctuate significantly over time.
Was this helpful?
351
24
Elena
Fri Jun 07 2024
Derivatives provide investors with an avenue to diversify their portfolios and mitigate risks associated with investing in individual assets. They allow investors to speculate on the future performance of an asset without actually owning it.
Was this helpful?
110
62
ethan_carter_engineer
Thu Jun 06 2024
Spot trading involves buying and selling cryptocurrencies at the current market price. Futures trading, on the other hand, allows investors to trade contracts that represent a future delivery of a cryptocurrency at a predetermined price.
Was this helpful?
338
38
Load 5 more related questions
