This story was originally published on HackerNoon at: https://hackernoon.com/how-to-approach-the-most-popular-futures-options-and-other-derivatives-in-crypto-and-legacy-markets.
Not understanding the market you trade can create various problems, especially when the position goes against you.
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Derivatives can be created from any underlying asset, Stocks, Bonds, Cryptocurrencies, commodities, etc. Derivatives are used in two major ways. Hedging purposes are usually used by larger players. Speculation and arbitrage are used by smaller/retail traders.
Published on 2 months, 1 week ago
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