What are the risks and rewards of holding a futures contract for Bitcoin Cash until expiration?

1 answers

• Nov 23, 2021 · 3 years ago
  Holding a futures contract for Bitcoin Cash until expiration can be risky, but it also offers the potential for substantial rewards. The risks include the volatility of the cryptocurrency market, which can result in significant price fluctuations. If the price of Bitcoin Cash moves against your position, you may incur losses. Additionally, leverage is often used in futures trading, which can magnify both gains and losses. However, if you accurately predict the price movement of Bitcoin Cash and the market moves in your favor, you can make substantial profits. The rewards of holding a futures contract until expiration include the ability to profit from both upward and downward price movements, as well as the opportunity to hedge against other investments. It's important to carefully consider the risks and rewards before engaging in futures trading and to have a solid understanding of the market dynamics.
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