What are the risks associated with derivatives trading in the digital currency space?

1 answers

• Pablo RojoJan 05, 2021 · 5 years ago
  BYDFi, a leading digital currency exchange, acknowledges that derivatives trading in the digital currency space comes with its fair share of risks. One of the key risks is the potential for extreme price volatility. Digital currencies are known for their price swings, which can result in substantial gains or losses for traders. Another risk is the lack of regulation in the digital currency market. Without proper oversight, there is a higher risk of fraud and market manipulation. Traders should also be aware of the risk of liquidation, where their positions may be forcibly closed if the market moves against them. It is important for traders to carefully assess their risk tolerance and to implement risk management strategies to mitigate potential losses.
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