Reply To: What’s the actual cost of starting a crypto exchange?

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How does Crypto Futures Exchange work?

Futures traders typically basically make wild predictions about how the price of a crypto asset will behave in the future. They may base their judgment that the asset will perform a certain way on a specific day on fundamental analysis utilizing specific metrics or technical analysis, or occasionally both. Futures traders occasionally borrow funds from the exchanges they trade on to increase the number of their trades in an effort to boost their prospective profits. Leverage is used here, and it is expressed as multiples of the initial trade size. It should be emphasized that borrowing can backfire if the trade does not go in your favor. It is a very risky venture since you will be liquidated and your money will be lost forever.

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