What is a basis risk? Explained simply

The basis risk is inherent to all futures contracts and arises from the fact that futures do not correlate flawlessly with the spot price of the underlying asset. The basis itself is the difference between the spot price and the futures price. If a hedge position needs to be closed before the...
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Basics of margin trading Bitcoin futures

Margin trading is the practice of buying or selling an asset with borrowed funds while the asset itself serves as collateral against your debt and can be sold (bought) to repay it. The trick with trading futures on margin is that no actual borrowing is needed to...
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What are futures contracts?

A future is an exchange-traded forward contract. In reality, most futures trading occurs without physical delivery of any asset whatsoever and the number of parties entering and exiting these contracts is unlimited...
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