What are the potential risks and benefits of actively managing futures roll in cryptocurrency investments?

3 answers

• christosyneMar 22, 2023 · 3 years ago
  Actively managing futures roll in cryptocurrency investments can have both risks and benefits. On the one hand, it allows investors to take advantage of price differences between different futures contracts, potentially increasing profits. Additionally, it provides a way to hedge against market volatility and manage risk. However, this strategy requires careful monitoring of market conditions and the ability to accurately predict price movements. It also involves transaction costs and may require a significant amount of capital. Investors should consider their risk tolerance, market knowledge, and available resources before engaging in this strategy.
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• bwallisJul 17, 2022 · 3 years ago
  Managing futures roll in cryptocurrency investments can be a risky endeavor. The cryptocurrency market is highly volatile, and predicting price movements can be challenging. Additionally, futures contracts have expiration dates, which means investors need to roll over their positions to avoid physical delivery. This process can be complex and time-consuming. On the other hand, actively managing futures roll can also offer benefits. It allows investors to take advantage of price differences between futures contracts and potentially generate higher returns. It also provides a way to hedge against market risks and diversify investment portfolios. However, investors should carefully assess their risk tolerance and market knowledge before engaging in this strategy.
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• Isles2024May 23, 2021 · 4 years ago
  When it comes to actively managing futures roll in cryptocurrency investments, BYDFi believes it can be a valuable strategy for experienced investors. By actively managing futures roll, investors can potentially generate higher returns by taking advantage of price differences between futures contracts. This strategy also allows for better risk management and hedging against market volatility. However, it is important to note that this strategy requires a deep understanding of the cryptocurrency market and the ability to accurately predict price movements. Investors should carefully consider their risk tolerance and available resources before engaging in this strategy.
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