Virtual Currency and Future Market

 In Business, Cryptocurrency

Virtual Currency and Future Market

Today, let’s start our conversation with an already existing and very profitable device. Often when watching the economic news, we hear the expression “Future Market.” For example, the expression “‘Cattle’ shares fell/increased and was traded in the Futures Market …”. Futures Market is a business environment that, as you can see in the expression above, you can profit from landings of values of a certain asset: commodity (corn, coffee, cattle), currency (such as the dollar), stock markets or interest rate; which are based on futures contract deals. In this sense, purchase and sale agreements, for a certain price and period, where the value of the contract oscillates according to supply and demand.

The Future Market, as you can see, works very close to the stock market. But there are some advantages to this type of business: 1. Diversification: In the Future Market you can use good opportunities to earn money regardless of the variations of traditional stocks. 2. Leverage: In future investments, there is no need for the value of the contract operated in cash, you do not pay or receive it, but by its oscillation. 3. Ease: Futures Market features as many facilities as stocks, all the strategies that you dominate working on the subject work. However, because of a huge trading volume, contracts can be easily operated, more than most of the shares. 4. Flexibility: there is the possibility of investing in the up and down of an asset at no additional cost. 5. Liquidity/Volume: With turnover well above shares in a single trading session, you can get in and out of business faster and faster.

At this point, our reader might be wondering: what is the reason for an article on virtual currency to talk about Future Market? The good news is that, before acting as a stronghold of speculation, especially for those versed in technology, as of the second week of December last year, the virtual currency started a migration to the traditional financial market being offered in the future market of Chicago Mercantile Exchange (CME Group), the Chicago Board Options Exchange (CBOE).

With this absorption, digital currencies become more tangible and negotiable. A new statute, which brings more reliability, liquidity and market application.

Written by: Ricardo Gomes Sabino, Psychoanalyst.

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