How does the concept of 'not held' apply to cryptocurrency trading?
Kevin VanDerMeidDec 15, 2021 · 3 years ago5 answers
Can you explain how the concept of 'not held' is relevant in the context of cryptocurrency trading? What does it mean and how does it affect traders?
5 answers
- Dec 15, 2021 · 3 years agoIn cryptocurrency trading, the concept of 'not held' refers to a type of order execution where the trader does not physically hold the underlying asset being traded. Instead, the trader speculates on the price movements of the asset without actually owning it. This can be done through various derivative products such as futures contracts or options. 'Not held' orders allow traders to profit from both upward and downward price movements without the need for owning the actual asset. It provides flexibility and leverage to traders, but also carries higher risks.
- Dec 15, 2021 · 3 years agoWhen it comes to cryptocurrency trading, 'not held' means that you don't need to actually own the cryptocurrency to trade it. You can speculate on its price movements without having to go through the hassle of buying and storing the actual coins. This concept is particularly popular in the world of derivatives trading, where traders can use financial instruments like futures contracts or options to profit from the price fluctuations of cryptocurrencies. 'Not held' trading allows for more flexibility and potentially higher returns, but it also comes with increased risks.
- Dec 15, 2021 · 3 years agoBYDFi, a leading cryptocurrency exchange, offers 'not held' trading options to its users. With 'not held' trading, you can take advantage of the price movements of various cryptocurrencies without actually owning them. This allows for greater flexibility and the ability to profit from both rising and falling markets. However, it's important to note that 'not held' trading carries higher risks and may not be suitable for all traders. It's always recommended to do thorough research and seek professional advice before engaging in any form of cryptocurrency trading.
- Dec 15, 2021 · 3 years agoThe concept of 'not held' in cryptocurrency trading is similar to margin trading in traditional financial markets. It allows traders to speculate on the price movements of cryptocurrencies without actually owning them. This can be done through various trading platforms and exchanges that offer leverage and derivative products. 'Not held' trading can be a useful strategy for experienced traders who want to take advantage of short-term price movements or hedge their positions. However, it's important to understand the risks involved and to use proper risk management strategies to protect your investment.
- Dec 15, 2021 · 3 years agoNot held trading in cryptocurrency refers to the ability to trade cryptocurrencies without actually owning them. This is made possible through derivative products like futures contracts or options, which allow traders to speculate on the price movements of cryptocurrencies without the need for physical ownership. Not held trading provides opportunities for traders to profit from both rising and falling markets, but it also carries higher risks due to leverage. It's important for traders to understand the concept of 'not held' and to carefully consider their risk tolerance before engaging in this type of trading.
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