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How do e mini futures contracts differ from traditional futures contracts in the context of cryptocurrency trading?

avatarLaserBeamNov 26, 2021 · 3 years ago1 answers

What are the key differences between e mini futures contracts and traditional futures contracts when it comes to trading cryptocurrencies?

How do e mini futures contracts differ from traditional futures contracts in the context of cryptocurrency trading?

1 answers

  • avatarNov 26, 2021 · 3 years ago
    In the context of cryptocurrency trading, e mini futures contracts differ from traditional futures contracts in several ways. One key difference is the size of the contracts. E mini futures contracts are typically smaller, making them more accessible to retail traders. Traditional futures contracts, on the other hand, often have larger contract sizes that may be more suitable for institutional investors. Another difference is the settlement method. E mini futures contracts are usually settled in cash, whereas traditional futures contracts may involve physical delivery of the underlying asset. This means that with e mini futures contracts, traders can speculate on the price of cryptocurrencies without actually owning them. Additionally, e mini futures contracts may have different contract specifications and trading hours compared to traditional futures contracts, so it's important to understand these differences before engaging in cryptocurrency futures trading.