How can traders use eurodollar futures to hedge their cryptocurrency investments?

1 answers

• SHAMIL ESMay 05, 2021 · 4 years ago
  As a representative of BYDFi, I can tell you that eurodollar futures can be a useful tool for traders to hedge their cryptocurrency investments. By taking a short position in eurodollar futures, traders can protect themselves against potential losses in the value of their cryptocurrency holdings. This is because eurodollar futures are highly liquid and can provide a reliable hedge against market volatility. It's important to note that eurodollar futures are settled in cash, so traders don't actually take delivery of the underlying asset. Instead, they profit or lose based on the difference between the futures price and the spot price at the time of settlement. Overall, eurodollar futures can be an effective way for traders to manage risk in their cryptocurrency investments.
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