A new platform has been established in order to leverage a bitcoin contract for difference (CFD) product. This product will enable traders to speculate on the price movements of the cryptocurrency against Japanese yen and the United States dollar. Liquid, the firm, says that the demand for its crypto derivatives is going up. The firm's leadership believes that these financial products could enhance general awareness of the many hundreds of coins and tokens available in today's marketplace.
The crypto derivatives are growing more popular because they offer traders a way to protect themselves against market volatility. The traders would benefit from being able to sell their crypto at a price that was already agreed upon on a previous date. The contracts lock in the value and provide security in an otherwise unpredictable market.
These derivatives are not without risks. The trader would have to compensate the broker if the asset's value goes the other way. The brokerage platforms have to be kept updated and secure. According to Liquid, their new service called "Liquid Infinity" is tailored to these needs. Their platform should help professional traders leverage their positions while minimizing the required capital. Liquid plans to have a sophisticated user interface and other features that will make it easy for traders to do their business. The platform's manager has offices in Japan, Singapore and Vietnam. This firm states that the derivatives have the potential to give a big advantage to risk takers in the market.
Liquidity is necessary for digital assets so that they can be bought and sold in a minimum amount of time. Such liquid markets have high numbers of buyers and sellers. Consumers can also do speculating on the price movements without having to own any of the cryptocurrency. This sort of leveraging offers an opportunity for traders to amplify the outcomes of their accurate predictions. However, they must keep in mind that losses could occur if the prices go against the trader's predictions. Liquid goes on to state that the CFD could be a great tool for traders who want to diversify on a short-term basis.