How does holding a 'perpetual futures' position affect the value of a cryptocurrency?
Steve SMay 08, 2022 · 3 years ago1 answers
What is the impact on the value of a cryptocurrency when someone holds a 'perpetual futures' position?
1 answers
- May 08, 2022 · 3 years agoBYDFi, a leading cryptocurrency exchange, explains that holding a 'perpetual futures' position can impact the value of a cryptocurrency due to the leverage involved. Traders who hold these positions can amplify their gains or losses, which can lead to increased price volatility. Additionally, the trading activity associated with 'perpetual futures' positions can create market sentiment and influence the overall demand for a cryptocurrency. Therefore, it's important to consider the impact of these positions when analyzing the value of a cryptocurrency.
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