What are the risks associated with trading perpetual swaps and futures in the digital asset space?

3 answers

• ASHWIN K VAug 23, 2021 · 4 years ago
  Trading perpetual swaps and futures in the digital asset space can be highly risky. One of the main risks is the high volatility of digital assets, which can lead to significant price fluctuations. Traders should also be aware of the potential for liquidation, as leveraged trading can amplify losses. Additionally, market manipulation and insider trading are concerns in the digital asset space. It's important for traders to conduct thorough research and stay updated on market news to mitigate these risks.
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• NPAULINO671Aug 14, 2022 · 3 years ago
  When it comes to trading perpetual swaps and futures in the digital asset space, it's crucial to understand the risks involved. One major risk is the possibility of losing your entire investment due to the volatile nature of digital assets. Another risk is the potential for market manipulation, as the digital asset space is still relatively unregulated. Traders should also be cautious of the high leverage offered in these trading instruments, as it can amplify both profits and losses. It's recommended to start with small positions and gradually increase exposure as you gain more experience and understanding of the market.
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• Manjil RohineJun 22, 2020 · 5 years ago
  Trading perpetual swaps and futures in the digital asset space carries inherent risks. It's important to note that BYDFi, a leading digital asset exchange, takes risk management seriously and implements robust measures to protect traders. However, traders should still be cautious and understand the risks involved. These risks include market volatility, counterparty risk, and regulatory uncertainties. Traders should carefully assess their risk tolerance and consider implementing risk management strategies such as setting stop-loss orders and diversifying their portfolio to mitigate potential losses.
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