As the derivatives market overtakes the cash market, it’s time to open it up to the ordinary investor.
Derivatives markets have gained popularity due to the fact that they offer traders more opportunities to diversify their investment portfolios. With derivatives, there are more opportunities for crypto assets, more sophisticated trading strategies, and increased market liquidity of the underlying asset.
Today, however, most permanent or futures exchanges are used by professional traders, making these offerings almost impossible for the average trader to access. Because of this, derivatives are often considered a “black box” in the financial world as few people understand them.
Fortunately, cryptocurrencies have become popular due to their ability to level the playing field for access to financial instruments. Therefore, with the right tools, the cryptocurrency derivatives market can become more accessible to the ordinary investor, requiring only some capital and an email address. As a result, the cryptocurrency derivatives market is now expected to dominate the conventional market and grow thanks to greater adoption and accessibility.
At the forefront of derivatives growth is CoinEx, now one of the industry’s first global marketplaces. Since CoinEx’s inception in 2017, the platform has expanded to include a full suite of products and services designed to facilitate cryptocurrency trading, including spot trading, margin trading, and an Automated Market Maker (AMM) for over 3 million users.
More recently, this has included expanding the derivatives market with CoinEx Futures. As of 2021, the trading volume of the market has increased by 6840% compared to the previous year.
Where simplicity meets security
As market acceptance of the prospect of cryptocurrency futures grows, competition for derivatives platforms will only intensify. With competition increasing, CoinEx recognized the need to further differentiate itself to support a growing market. Since then, the team has identified a gap in the market due to the common misconception that a product can be either simple and easy to use or professional and secure.
With the updated slogan “Make Crypto Trading Easier”, it is only fitting that the platform seeks to address these issues by offering easy-to-use futures products that can lower the barrier to entry into the market. Essentially, this will take crypto futures trading out of the realm of professional traders. Simplicity is then evident through simple operations, convenient order placement, clear position information and a completely seamless process from opening to closing a position. In addition, all features including Take Profit (TP) and Stop Loss (SL) orders, futures calculator and one-click liquidation that support ongoing management are available from a single point of entry to CoinEx Futures.
Besides the design, CoinEx also supports new investors with educational materials to help users understand the basics through simulated instruction manuals created and distributed by the platform. The educational material aims to help users avoid common futures trading pitfalls.
While CoinEx is easy to use, it offers extensive functionality with access to over 100 futures markets, allowing users to trade both linear and inverse contracts that exist across multiple trading pairs. The platform also uses its offering’s original pricing mechanism, Mark Price, to determine the futures price on the most popular platforms to protect investors from abnormal market fluctuations and futures mechanisms such as insurance fund and auto-deleveraging (ADL). ) to avoid refunds for liquidation.
MORE INFO FROM COINEX HERE
To ensure investor safety, CoinEx futures also support strong risk controls and safeguards. Their high security standards are reflected in the absence of security breaches, which have remained at zero since their inception five years ago.
Several futures mechanisms
With a growing global presence in over 200 countries and regions, CoinEx Futures is now positioned as a comprehensive offering with linear and inverse futures markets, supporting up to 100x. CoinEx users can also leverage additional releases from the last 12 months, including Take Profit, Stop Loss, Close All, and Profit and Loss Analysis (PNL) futures for 180 days.
As the platform evolves, its offering is proving well poised to make derivatives trading easy for everyone.