Using Upbit's futures contracts for hedging can be a great way to hedge against market volatility and protect your assets. However, there are both risks and benefits of using this type of hedging strategy.
The biggest risk associated with using futures contracts is the possibility of counterparty default. Futures contracts are traded through a broker, and if the broker defaults on their obligations, you could be left with large losses. Additionally, the futures markets are highly leveraged, meaning that a relatively small price movement can result in large gains or losses.
On the other hand, there are also many benefits of using Upbit's futures contracts for hedging. Futures contracts are typically liquid, meaning that they can be easily sold or bought without having to wait for the market to move. This makes them a great tool for hedging against market volatility. Additionally, since futures contracts are traded through a broker, they offer a degree of protection against counterparty default.
I'm looking for advice from experienced users of Upbit's futures contracts for hedging.
The biggest risk associated with using futures contracts is the possibility of counterparty default. Futures contracts are traded through a broker, and if the broker defaults on their obligations, you could be left with large losses. Additionally, the futures markets are highly leveraged, meaning that a relatively small price movement can result in large gains or losses.
On the other hand, there are also many benefits of using Upbit's futures contracts for hedging. Futures contracts are typically liquid, meaning that they can be easily sold or bought without having to wait for the market to move. This makes them a great tool for hedging against market volatility. Additionally, since futures contracts are traded through a broker, they offer a degree of protection against counterparty default.
I'm looking for advice from experienced users of Upbit's futures contracts for hedging.