Cryptocurrency Q&A Why are futures contracts risky?

Why are futures contracts risky?

RubyGlider RubyGlider Mon Dec 23 2024 | 6 answers 1066
Futures contracts are risky because they involve leverage, meaning small market movements can lead to large losses. Additionally, the obligation to buy or sell the asset at a future date exposes investors to potential adverse price movements. Why are futures contracts risky?

6 answers

mia_harrison_painter mia_harrison_painter Wed Dec 25 2024
Prices in the futures market can fluctuate wildly.

Was this helpful?

298
48
Daniela Daniela Wed Dec 25 2024
Leverage further magnifies market risk in futures trading.

Was this helpful?

196
30
ShintoMystical ShintoMystical Wed Dec 25 2024
These changes can occur rapidly and unexpectedly.

Was this helpful?

79
69
Valentina Valentina Wed Dec 25 2024
Adverse price movements can lead to substantial losses.

Was this helpful?

360
52
CryptoLord CryptoLord Wed Dec 25 2024
The potential for devastation is a real concern in futures trading.

Was this helpful?

44
26
Load 5 more related questions

|Topics at Cryptocurrency Q&A

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users

The World's Leading Crypto Trading Platform

Get my welcome gifts