How can EFPs be used in the cryptocurrency market?

3 answers

• Feb 18, 2022 · 3 years ago
  EFPs, or Exchange for Physicals, are financial instruments that allow traders to exchange a futures contract for the underlying asset. In the cryptocurrency market, EFPs can be used to hedge positions or to take advantage of price discrepancies between the futures and spot markets. By using EFPs, traders can effectively manage their risk and potentially profit from market inefficiencies.
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• Feb 18, 2022 · 3 years ago
  EFPs in the cryptocurrency market provide traders with the flexibility to convert their futures contracts into the actual cryptocurrency asset. This can be useful for traders who want to take physical delivery of the asset or for those who want to avoid the hassle of settling futures contracts. Additionally, EFPs can be used for arbitrage opportunities by exploiting price differences between different exchanges or markets.
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• Feb 18, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, offers EFPs as a trading option for its users. With BYDFi's EFPs, traders can easily convert their futures contracts into the underlying cryptocurrency asset, providing them with more flexibility in managing their positions. This feature makes BYDFi a preferred choice for traders looking to utilize EFPs in the cryptocurrency market.
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