What is the difference between micro ether futures and regular ether futures?
jordipollardNov 25, 2021 · 3 years ago3 answers
Can you explain the key differences between micro ether futures and regular ether futures in the cryptocurrency market? How do they differ in terms of contract size, trading volume, and margin requirements? Are there any specific advantages or disadvantages of trading micro ether futures compared to regular ether futures?
3 answers
- Nov 25, 2021 · 3 years agoMicro ether futures and regular ether futures are both derivative financial instruments that allow traders to speculate on the future price movement of ether, the native cryptocurrency of the Ethereum blockchain. However, they differ in terms of contract size. Micro ether futures have a smaller contract size compared to regular ether futures, which means that traders can enter the market with a lower capital requirement. This makes micro ether futures more accessible to retail traders who may have limited funds to invest. On the other hand, regular ether futures have a larger contract size, making them more suitable for institutional investors or traders with larger capital.
- Nov 25, 2021 · 3 years agoThe trading volume of micro ether futures and regular ether futures can also vary. While regular ether futures generally have higher trading volume due to their popularity among institutional investors, micro ether futures may have lower trading volume but can still provide sufficient liquidity for retail traders. It's important to consider the trading volume and liquidity of the specific exchange where you plan to trade these futures contracts.
- Nov 25, 2021 · 3 years agoFrom the perspective of BYDFi, a digital currency exchange, micro ether futures offer a unique opportunity for traders to gain exposure to the price movement of ether with smaller contract sizes. This can be beneficial for traders who want to manage their risk more effectively or have limited capital to invest. However, it's important to note that the trading experience and features of micro ether futures may vary across different exchanges. Traders should carefully evaluate the terms and conditions, fees, and liquidity of micro ether futures before engaging in trading activities.
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