Cryptocurrency Q&A What does the derivative tell you?

What does the derivative tell you?

Sara Wed Oct 02 2024 | 5 answers 846

Could you please clarify for me, what exactly does the derivative in the context of finance and cryptocurrency represent? Is it a measure of the sensitivity of the value of an asset to changes in another variable, such as the price of an underlying asset? And if so, how does it help investors and traders make informed decisions in the highly volatile world of cryptocurrency markets? Also, are there any specific risks associated with using derivatives in cryptocurrency trading that one should be aware of? What does the derivative tell you?

What does the derivative tell you?

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