What are the factors that determine the tick value of e-mini futures in the digital currency space?
Kashif RizwanDec 27, 2021 · 3 years ago3 answers
In the digital currency space, what are the various factors that play a role in determining the tick value of e-mini futures?
3 answers
- Dec 27, 2021 · 3 years agoThe tick value of e-mini futures in the digital currency space is determined by several factors. Firstly, the volatility of the underlying digital currency affects the tick value. Higher volatility leads to larger price movements and therefore a larger tick value. Secondly, the liquidity of the market also plays a role. A more liquid market will have tighter bid-ask spreads, resulting in a smaller tick value. Additionally, the contract specifications set by the exchange, such as the contract size and tick size, also influence the tick value. Finally, market demand and supply dynamics can impact the tick value as well. Overall, these factors interact to determine the tick value of e-mini futures in the digital currency space.
- Dec 27, 2021 · 3 years agoDetermining the tick value of e-mini futures in the digital currency space is no easy task. It requires a deep understanding of the market dynamics and various factors at play. One of the key factors is the volatility of the digital currency. Higher volatility leads to larger price movements, which in turn results in a larger tick value. Liquidity is another important factor. A more liquid market will have tighter bid-ask spreads, resulting in a smaller tick value. Additionally, the contract specifications set by the exchange, such as the contract size and tick size, also play a role in determining the tick value. It's important to consider all these factors when trading e-mini futures in the digital currency space.
- Dec 27, 2021 · 3 years agoWhen it comes to the tick value of e-mini futures in the digital currency space, there are several factors to consider. Volatility is a major factor that affects the tick value. Higher volatility leads to larger price movements, resulting in a larger tick value. Liquidity also plays a role. A more liquid market will have tighter bid-ask spreads, which means a smaller tick value. Contract specifications, such as the contract size and tick size, set by the exchange also influence the tick value. Finally, market demand and supply dynamics can impact the tick value as well. It's important to keep these factors in mind when trading e-mini futures in the digital currency space.
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