Get started

Derivatives

UniDex: a DeFi aggregator for traders🟢 Here is a project that is off the radar in its embryonic phase, whose intention is to be an aggregator of Swaps, Options, Perpetual Contracts, etc. The risk is very high: the token is not yet on any CEX. Only traded on the Ethereum network and Arbitrum network. 📝 Definition "UniDex's primary mission is to provide the most seamless trading experience by aggregating anything & everything. We aim to be the Nasdaq of DeFi. UniDex is a DeFi platform that aims to provide a hub for traders to access the best rates for financial instruments within the ecosystem. We envision UniDex as a platform similar to NASDAQ, where traders can place orders for any type of financial instrument, and UniDex will route the order to the best available rate against hundreds of sources & matching orders. In the short and long term, UniDex plans to offer a range of trading tools to support this experience, including... Options Aggregation Swap Aggregation Perpetual Aggregation Cross-chain trading Exotic leverage trading pairs Advanced analytics and many more opportunities to come " 📈 DeFi For now, the token can be traded on Uniswap (Ethereum network), and on TraderJoe (Arbitrum network).
ULong
by andre_007
Trading 101 - What is a Derivative & why are they revolutionary?Derivatives trading! What I believe has been the absolute market revolution since shares. Derivatives might sound complicated and something you would hear from a professor or a know-it-all businessman – but they’re really not. I am no academic or even remotely one of the smartest guy’s in the world. And if I can grasp the idea and understanding of derivatives, I pretty much guarantee you will too. Also, if you want to take trading seriously and really make a living with it, you’ll need to understand derivatives trading sometime in your career. Let’s start at the very beginning. What is a derivative? – Collins English Dictionary – ‘A derivative is an investment that depends on the value of something else’ When it comes to trading, a derivative is a financial contract between two parties whose value is ‘derived’ from another (underlying) asset. Let’s break that down more simply: A derivative is a financial contract (CFDs, Spread Trading, Futures, Forwards, Options &Warrants) Between two parties (the buyer and seller) Whose value (the market’s price) Is derived (depends on or comes from) Another underlying asset (Share, index, commodity, currency, bond, interest-rate, crypto-currency etc…) You’ll find that the derivative’s market price mirrors that of the underlying asset’s price. Why trade using derivatives? The absolute beauty about trading derivatives is that they are a cheaper and a more profitable way to speculate on the future price movements of a market without buying the asset itself. You don’t get all the benefits with derivatives What’s probably important to note with derivatives, is this. When you buy a derivative’s contract, you’re not actually buying the physical asset. You’re simply making a bet on where you expect the price to go. EXAMPLE: When you buy actual shares of a company, means you’ll be able to attend AGMs (Annual General Meetings), Vote and claim dividends from a company. When you trade derivatives on the underlying share, means you’ll be exposed to the value of the shares and the price movements – and that’s it! As a trader, when you buy or sell a derivative, you’re not actually investing in the underlying asset but rather just making a bet (speculation) on where you believe the market’s price will head. This gives you the advantage and opportunity to: Buy low (go long) a derivative of the underlying asset and sell it at a higher price for a profit or Sell high (go short) a derivative of the underlying asset and buy it back at a lower price for a profit Remember when I said it was cheaper and more profitable? You can thank margin With derivatives, you’ll normally pay a fraction of the price of the total sum and still be exposed to the full value of the asset (share, index, currency etc…) The fraction of the price paid is called ‘margin’. EXAMPLE: To buy and own 10 Anglo shares at R390 per share will cost you R3,900 (R390 per share X 10 shares). To buy and be exposed to 10 Anglo shares using derivatives, and the margin of the contract is 10% per share, means you’ll only pay R390 (R390 per share X 10% margin per derivative X 10 shares). I’m sure you can see that with derivatives, you’ll be exposed to more and pay less which will gear up your potential profits or losses versus when trading shares. This is why we call derivatives, geared financial instruments. Enjoyed the article comment below and follow for more... Trade well, Live free Timon MATI Trader Also my socials are below thanks to Trading View.
JSE:J200Education
by Timonrosso
$DYDX - Bulls breaking FALLING WEDGEHello my Fellow TraderZ, Few days ago I made an analysis on $DYDX ranging inside Descending Channel Pattern on 4 HTF. Although price gave a Fakeout and create a Double Bottom and again came back inside the channel and breaking upward of the channel. BULLISH DIVERGENCE is still valid + Price is trying to come above the EMA 55 on 4 HTF + Breakout Volume is Pretty good enough. Also look on DTF, #DYDX is forming a FALLING WEDGE Pattern which is generally Bullish in nature. For strong confirmation look for the daily close above the Wedge and the Resistance area of $1.30. TP 1 : $1.41 TP2 : $1.52 SL : according to your own R:R Note : never underestimate #BITCOIN which could ruin the Party. Happy Trading Fam. CHEERS!!!
Long
by TRADER-GOKU
$DYDX - BULLISH DIVERGENCEHello my Fellow TraderZ, Today we'll be talking about $DYDX. We all know #DYDX is a Decentralized Exchange's native token. One of my favorites for the long term portfolio. Here we see that in the recent pump price got rejected by the High Confluence Zone(containing TL1 + DESCENDING CHANNEL TL + HORIZONTAL RESISTANCE) and now back to its SUPPORT once again. Clearly a BULLISH DIVERGENCE on 4HTF is easily visible and I personally very excited to take this Trade. Ofcourse we should not overlook #BTC as it is heavily co-related to SPX500 which is itself in bearish pressure due to FED's Hawkish Rate Hikes. But still keep $DYDX in eye .
Long
by TRADER-GOKU
How do crypto options contracts affect the market?Hi Friends Today we will explain the option contracts affect on crypto and other markets. First lets see whats an option contract? Options are derivative contracts that entitle the purchaser to buy or sell the connected asset at a predetermined price before the contract expires. There are two types of options , call and put. The right to buy is known as a ‘call’ option, whereas the right to sell the underlying asset is called a ‘put’ option. Every options contract comes with a specified expiry date which is the last date for settling the contract. The price at which the options contract is settled is called the strike price . This is the price at which the options contract owner is allowed to buy/sell the underlying cryptocurrency. The price at which an options contract is bought is called the premium . Now, when would you buy a cryptocurrency? Obviously when it is trading at a price that is lower than it should be,right? This means that you find it to be undervalued and you expect its price to rise in the future so you can sell higher and make money. But what if the crypto price fell instead? Wouldn’t it be nice if somebody would still buy the cryptocurrency from you at a higher price? For that you would require selling rights of the cryptocurrency and you will buy a put option. Now on the flip side when would you sell a cryptocurrency? Of course, when you think that it is trading at a price higher than it should be. This means that you find it to be overvalued and expect it to fall from here. But what if the price of the cryptocurrency rose instead? You would then want to add more crypto at a lower price and sit on assets that are valued higher than your purchase price. For this you would need buying rights or a call option. Since options allow traders the right to buy/sell assets at a predetermined price they shield them from the volatility of the crypto markets. Moreover the volume of the call or put options in the market signals the direction in which investors expect the markets to move. More put options indicate that investors expect the markets to fall whereas more call options indicate that investors expect the market to rally. Now when the option contracts are near their expiration date, large players try to drive the underlying crypto price into a favourable range depending on the option contracts they have purchased. This is done so that the deal can become profitable. In summary: Buying a Call (Long) = Bullish -----> you think the crypto will be worth more later so you want to lock in todays price to buy later at a profit. Selling a Call (Short) = Bearish -----> you think the crypto will be worth less later so you want to lock in todays price to sell later at a profit. Buying a Put (Short) = Bearish ------> you think the crypto will be worth less later so you want to lock in todays price to sell later at a profit. Selling a Put (Long) = Bullish --------> you think the crypto will be worth more later so you want to lock in todays price to buy later at a profit. I hope you enjoy this education please share me your opinions in comments. thank you all specially @TradingView team
CRYPTOCAP:BTCEducation
by TraderAmin-KZ
Derivatives, Synthetics, FOREX...Next Big Opportunity?For the next bull market cycle, I believe the derivatives sector, synthetic assets, equities, commodities and FOREX can provide an above-average exponential gain. That's because the blockchain and cryptocurrency market tends to swallow the traditional market (I didn't say that... it was a trader with 30 years of experience who abandoned the traditional market). In this comparison, I put some of the projects that I consider to have upside potential, after listening to some analysts and also from my own experience. I also put on the chart the price of BTC and ETH for benchmark. Projects and tokens: Synthetix (SNX) (via Optimism or Ethereum) GMX (GMX) (via Arbitrum or Avalanche) Gains Network (GNS) (via Polygon) dYdX (DYDX) (via Etherem) Mango Markets (MNGO) (via Solana) Perpetual Protocol (PERP) (via Optimism or Ethereum) Deri Protocol (DERI) (via BSC or Arbitrum)
COINBASE:SNXUSDLong
by andre_007
1
$BTCDOM/USDT 2D (#BinanceFutures) Rising wedge on resistanceBitcoin Dominance Index looks locally topped and about to reverse mid-term, let's give it another try! Current Price= 1517.1 Sell Entry= 1517.1 - 1572.5 Take Profit= 1411.7 | 1311.6 | 1211.1 Stop Loss= 1656.1 Risk/Reward= 1:1.2 | 1:2.1 | 1:3 Expected Profit= +17.24% | +30.20% | +43.20% Possible Loss= -14.40% Fib. Retracement= 0.236 | 0.382 | 0.559 Margin Leverage= 2x Estimated Gain-time= 5-6 months Tags: #BTCDOM #BTCDOMUSDT #BTCD #BitcoinDominance #Index #Futures #Derivatives #Dominance Contract: www.binance.com
Short
by TradingOn