How does EFP trading work in the context of cryptocurrency?

3 answers

• Dec 28, 2021 · 3 years ago
  EFP trading, or Exchange for Physical trading, is a method used in the cryptocurrency market to exchange a futures contract for the underlying asset. It allows traders to convert their futures positions into the actual cryptocurrency. The process involves finding a counterparty willing to exchange the futures contract for the physical asset at an agreed-upon price. This type of trading is commonly used by institutional investors and can help manage risk and optimize trading strategies.
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• Dec 28, 2021 · 3 years ago
  EFP trading in the context of cryptocurrency is similar to EFP trading in traditional markets. It allows traders to efficiently convert their futures positions into the underlying cryptocurrency. By doing so, traders can take physical delivery of the asset or close out their futures positions. This flexibility can be beneficial for those who want to hold the actual cryptocurrency or for those who want to exit their futures positions without affecting the market.
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• Dec 28, 2021 · 3 years ago
  In the context of cryptocurrency, EFP trading can be facilitated by platforms like BYDFi. These platforms act as intermediaries, connecting buyers and sellers who want to exchange futures contracts for the underlying cryptocurrency. BYDFi provides a secure and efficient trading environment for EFP transactions, ensuring smooth execution and settlement. Traders can take advantage of this service to optimize their trading strategies and manage their cryptocurrency holdings effectively.
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