Top 7 Decentralized Derivatives Trading Platforms
Decentralized derivatives are a new way for traders to trade crypto assets without directly holding them. Read on to learn what decentralized crypto derivatives are and where you can trade them. What Are Decentralized Crypto Derivatives? In the world of traditional finance, a derivative is an investment contract that derives its value from an underlying asset , enabling investors to hold or trade assets without having to own them directly. Derivatives allow investors to hedge positions, speculate on market movements, transfer risk to other parties, and take leveraged positions. Decentralized derivatives, or DeFi derivatives, are blockchain-native derivatives contracts that use smart contracts to automate the terms of contracts, thereby removing the need for brokers. Settlement happens automatically on-chain when the contract terms have been fulfilled. Decentralized derivatives value often track crypto markets , though, in some cas...