The Singapore Exchange (SGX) is expected to list perpetual cryptocurrency futures contracts this year.
This cryptocurrency product aims to meet the needs of institutional investors and is not suitable for individual investors, according to Jinshi.
MAIN CONTENT
SGX plans to launch perpetual cryptocurrency futures contracts in 2024.
The product is primarily aimed at institutional investors and is not suitable for individual investors.
The goal is to meet the diverse and professional needs of the cryptocurrency market.
What are SGX's plans regarding cryptocurrency futures contracts?
The Singapore Exchange is expected to launch perpetual cryptocurrency futures contracts before the end of 2024. This is a step to expand the product portfolio in the cryptocurrency sector.
Perpetual futures contracts are complex financial instruments that help institutional investors manage risks or effectively capitalize on cryptocurrency price volatility. The launch of this product will enhance SGX's competitiveness in the global financial market.
Why is this product not suitable for individual investors?
According to Jinshi, derivative cryptocurrency products such as perpetual futures carry high risks and are not suitable for inexperienced retail investors.
This contract requires in-depth knowledge and good risk management abilities due to the high volatility of the cryptocurrency market. Therefore, focusing on meeting the needs of large institutions with expertise and financial capacity will help ensure greater transparency and stability.
The introduction of perpetual cryptocurrency futures contracts will facilitate institutional investors' access to advanced risk management tools, elevating Singapore's financial market.
Jinshi, Information released in August 2024
What is the significance of launching cryptocurrency futures contracts for Singapore's financial market?
The new product promises to enhance liquidity and diversify investment options in the cryptocurrency market in Singapore.
This is also a step to strengthen Singapore's position as a leading financial center in Asia, helping institutional investors balance and optimize their portfolios with advanced products that align with modern financial development trends.
How do cryptocurrency futures products and their benefits for institutional investors differ?
Product Type Features Suitable Audience Main Benefits Perpetual Futures Contract No expiration date, can hold long-term positions Professional institutional investors Flexible risk management, increased liquidity Traditional Futures Contract Fixed expiration date Institutional and knowledgeable individual investors Leverage and profit opportunities from market volatility
Frequently asked questions
What is a perpetual futures contract?
This is a derivative product with no expiration date, allowing for long-term positions without the need for periodic liquidation.
Who should trade cryptocurrency futures contracts?
The product is aimed at experienced institutional investors with risk management capabilities and is not suitable for individual investors.
How does the launch of this product affect the Singapore market?
Enhancing liquidity, diversifying products, and reinforcing Singapore's position in the global cryptocurrency market.
When does SGX plan to launch cryptocurrency futures products?
Expected to complete and list perpetual cryptocurrency contracts before the end of 2024.
Does this product have any risks?
High price volatility along with complex characteristics makes trading cryptocurrency futures contracts carry significant risk, requiring skills and in-depth knowledge to manage.
Source: https://tintucbitcoin.com/singapore-exchange-se-niem-yet-hop-dong-tuong-lai/
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