Derivatives
Derivatives refer to financial contracts derived from the price movements of crypto assets.
The term Derivatives generally refers to derivative products in the cryptocurrency world. These products are financial contracts derived from the price movements of crypto assets and usually come in various forms such as futures, options and swaps. Derivatives offer investors the opportunity to profit from price changes of crypto assets or manage their risks. For example, if an investor thinks that the price of a crypto asset will increase, he can profit from this price increase by purchasing a futures contract. Options, on the other hand, give investors the right to buy or sell an asset at a certain price on a certain date, providing investors with protection against price fluctuations. Swaps, on the other hand, enable the exchange of assets between two parties and are used to reduce risks or implement a certain strategy. Derivatives enable the crypto market to offer a more sophisticated and complex investment strategies.
