Eureka Spot Contract

European Exchange spot contract is a standardized financial derivative with spot assets as the underlying subject and performance guaranteed by Eureka Exchange. Specifically, its characteristics include: spot assets are the subject of the contract, such as BTC, ETH, etc. Has standard trading units, delivery dates and settlement rules. As the performing party of the contract, Eureka Exchange ensures the smooth delivery of the contract.

European Exchange Spot Contract

What is Eureka Exchange Spot Contract?

European Exchange spot contract is a standardized financial derivative with spot assets as the underlying subject and performance guaranteed by EurExchange.

How to understand it specifically?

• Spot assets: The subject matter of the contract is spot assets, such as BTC, ETH, etc.
• Standardization: Contracts have standard trading units, delivery dates and settlement rules.
• Performance Guarantee: European Exchange, as the performing party of the contract, guarantees the smooth delivery of the contract.

The difference between spot contracts and spot trading

• Leverage: Spot contracts can be traded using leverage to amplify gains or losses.
• Delivery method: The spot contract will be forced to close the position and deliver the spot assets on the expiration date, while in spot trading, you can hold the assets.
• Risk: Spot contracts have higher risks than spot transactions due to leverage and forced liquidation mechanisms.

Advantages of spot contracts

• High return potential: Leverage amplifies returns.
• Hedging tools: Can be used to hedge risks caused by price fluctuations of spot assets.
• Good market liquidity: European Exchange has a large trading volume, ensuring the liquidity of the contract.

Risk of spot contract

• Risk of liquidation: Leverage trading may lead to liquidation of the position.
• Risk of forced liquidation: The position will be forced to be liquidated on the expiration date, which may result in losses.
• Liquidity risk: When the trading volume is low, there may be situations where the contract cannot be completed in time.

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