stochrslBitcoinStochrslBitcoinandBitcoinSCEX
Bitcoinisakindofdigitalcurrency,whichisbecomingmoreandmorepopularallovertheworld.Itisdecentralized,whichmeansitisnotcontrolledbyanygovernmentorcentralbank.BitcoinistradedinBitcoinbase,KrakenTentaclesOfTheDeepandBitstamp.Stochrsl,headquarteredintheUnitedStates,isoneofthemorepopularexchanges.
Stochrslisaleadingdigitalcurrencyexchange,allowinguserstobuyandsellBitcoin,Ethereum,Litecoinandotherdigitalcurrency.Theyalsoprovidevariousotherservices,suchasmargintradingandderivativestrading.Stochrslisknownforitslowfeesandhighsafetystandards.
BitcoinSCEX
STOCHSLprovidesaproductcalledBitcoinSCEX,whichisaderivativeofBitcoin.ItisafinancialtoolthatallowsuserstoguessthepriceofBitcoinwithoutactuallyowningit.ThetoolisdesignedtotrackthepriceofBitcoin,butuserscanalsouseittohedgepricefluctuations.
BitcoinSCEXisafuturescontractsettledinbitcoin.IttradesontheStochrslexchangeandissubjecttothesamerulesandregulationsasotherderivativecontracts.Thecontracthasafixedexpirationdate,thatis,theexpirationdateofthecontract.
AdvantagesofBitcoinSCEX
ThereareseveraladvantagestousingBitcoinSCEX.First,itallowstraderstoguessthepriceofbitcoinwithoutactuallyowningit.Thismaybebeneficialforthosewhowanttohedgeagainstpricefluctuationsbutdon'twanttotaketheriskofholdingassets.
Second,itistradedonaregulatedexchange,whichmeansthatitissubjecttothesamerulesandregulationsasotherderivativecontracts.Thisprovidesmoreprotectionfortradersandavoidspotentiallosses.
Finally,thisisarelativelylow-costwaytospeculateonbitcoinprices.ThecostsassociatedwithtradingbitcoinSCEXaremuchlowerthanthoseassociatedwithtradingactualbitcoin.
DisadvantagesofBitcoinSCEX
BitcoinSCEXalsohassomeshortcomings.Firstofall,itisaleveragedproduct,whichmeansthattradersmaylosemoremoneythantheyinvest.Thisisriskyforinexperiencedtraders.
Second,thecontractissettledinbitcoin,whichmeansthatthetradermusthavebitcointosettlethecontract.Thismeansthattradersmusthaveaccesstothebitcoinnetworkinordertotakeadvantageofthecontract.
Finally,thecontracthasafixedexpirationdate,whichmeansthattradersmustclosetheirpositionsbeforethecontractexpires.Thiscanbedifficultfortraderswhoareunfamiliarwiththemarketorunabletomonitortheirpositions.
Conclusion
BitcoinSCEXisaderivativeofBitcoin,whichcanbeusedtoestimatethepriceofBitcoinwithoutactuallyowningit.IttradesontheStochrslexchangeandissubjecttothesamerulesandregulationsasotherderivativecontracts.UsingbitcoinSCEXhasseveraladvantages,suchasbeingabletospeculateonthepriceofbitcoinwithouttakingtheriskofowningtheasset,lowerfeesandmoreprotectionagainstpotentiallosses.However,usingbitcoinSCEXalsohassomedisadvantages,suchastheriskofleverageloss,theneedtoaccessthebitcoinnetwork,andthedifficultyinclosingthepositionbeforethecontractexpires.