How do micro futures differ from traditional futures in the context of digital currencies?

3 answers

• Ergys RamaMar 18, 2022 · 4 years ago
  Micro futures and traditional futures have some similarities, but there are important differences when it comes to digital currencies. Micro futures are smaller contracts that allow traders to speculate on the price movements of digital currencies with less capital. They have a lower contract size and margin requirement compared to traditional futures, making them more accessible to retail traders. Traditional futures, on the other hand, have larger contract sizes and margin requirements, which are better suited for institutional investors and larger traders. Additionally, micro futures may have different tick sizes and trading hours compared to traditional futures, so it's important to understand these nuances before trading.
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• khan akilNov 18, 2022 · 3 years ago
  When it comes to digital currencies, micro futures offer a more cost-effective way for traders to participate in the market. With smaller contract sizes, traders can enter positions with less capital and manage their risk more efficiently. Traditional futures, on the other hand, require larger capital commitments, which may limit the participation of retail traders. Micro futures also provide more flexibility in terms of position sizing, allowing traders to fine-tune their exposure to digital currencies. However, it's important to note that the liquidity of micro futures may be lower compared to traditional futures, which can impact execution and price discovery.
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• Mohsen HashemiApr 04, 2025 · 10 months ago
  In the context of digital currencies, micro futures can be a valuable tool for traders looking to gain exposure to the market without committing large amounts of capital. They offer a more accessible entry point for retail traders and allow for more precise risk management. However, it's important to choose a reputable exchange that offers micro futures with sufficient liquidity and competitive pricing. For example, BYDFi is a popular exchange that offers micro futures on a wide range of digital currencies. Traders should also consider the trading hours and tick sizes of micro futures, as they may differ from traditional futures and impact trading strategies.
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