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Comparison Between Cryptocurrency Investment And Futures Investment

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Vandana Mrigwani Follow

INDIA

Mar, 25 2021

Mar, 25 2021

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High liquidity 

 

The daily trading volume of the exchange market is as high as 1.4 trillion US dollars, making the exchange market the world's largest and most capitalized financial market. the dimensions of other financial markets are inferior to the quantity of trading and therefore the exchange market. If you employ the futures exchange with a daily trading volume of only 300 dollars, there'll be a clearer idea of the degree of liquidity. 

 

24 hours a day 

 

The exchange market may be a 24-hour uninterrupted market. At 5 pm on Sunday, at EST, exchange transactions started in Sydney, Australia, then opened at 7:00 in Tokyo, Japan, then started at 2 am in London, England. It's eight o'clock in the morning in NY, USA. For investors, in a crypto market where investors can easily respond whenever and wherever news occurs. Investors also can flexibly plan for the time of entry or exit. 

 

Compared to the US exchange futures exchange, like the Chicago Mercantile Exchange or the Philadelphia Exchange, there are certain restrictions on business hours. within the case of the Chicago Mercantile Exchange, business hours are from 8:20 am EST to 2 pm, so if any important news from London or Tokyo isn't announced during the business hours, then subsequent day Opening will become very confusing. 

 

The quality and speed of the transaction 

 

Each transaction within the futures exchange features a different transaction date, a special price, or a special contract content. Every futures trader has the subsequent experience. A futures trader has got to await half n hour for trade, and their final transaction price must vary. Although there are no guarantees for electronic trading and restrictions on transactions, the transaction of market orders remains quite unstable. In the cryptocurrency market, investors can trade real-time market quotes and traders offers stable quotes and instant deals, even when the market is at its peak, unable to close. within the futures exchange, the uncertainty of the transaction price is because all orders are combined through a centralized exchange, thus limiting the number of traders, the flow of funds, and therefore the total transaction amount at an equivalent price. 

 

Foreign exchange trading commission-free 

 

In the futures exchange, additionally to the extent, investors must also pay additional commissions or fees or charges. All financial products have a price and a price, and therefore the difference between the bid-ask price is defined because of the spread or the value of the transaction. Until today, due to the shortage of transparency, the unreasonable spread of the futures exchange remains a fact. Now, investors can use the bid and ask prices displayed by the web trading platform to gauge the depth of the market and therefore the real transaction costs. The spread of exchange trading is far less than that of futures trading, especially after-hours trading because futures investors are susceptible to low liquidity and suffer large losses. 


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Vandana Mrigwani

CBW - External Analyst

INDIA

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