What if you’ve been trading the wrong instrument?
As a trader, that’s a tough question to consider. The implications of your chosen financial instrument cannot be overstated, and with so many instruments to choose from, how do you know you’ve picked the right one?
There are over 10,000 stock tickers in the Nasdaq Capital Market and the New York Stock Exchange alone. In the derivatives class, the five most common instruments — options, futures, forward, interest rate swaps and synthetic agreements for foreign exchange — number in the thousands. With foreign exchange instruments, agreements are broken down into spots, outright forwards and currency swaps, providing further confusion.
In this labyrinth of choices is the trader’s trouble. How, for one, do you discover the instrument suited to your risk profile and financial goals? Where do you go to uncover your optimal trading tool? Could the right instrument mean the difference between failure and success?
Tradovate, a modern, cloud-based futures trading platform, might be helping retail traders answer these difficult questions by providing an instrument that addresses roadblocks to early success.
Products Designed For Traders, By Traders
Founded on decades of expertise, research and brokerage leadership, Tradovate says it was born out of the recognition that traders were long overdue for a new and innovative trading experience. Specifically, the Tradovate team focused on delivering a seamless futures trading experience designed to address the shortcomings of current market products.
In 2022, leveraging Coinbase Global Inc. COIN Nano Bitcoin futures (NBFs), Tradovate reportedly made significant strides in propagating a potentially game-changing futures product.
What NBFs Could Do For You
With previous experience as a futures broker, Tradovate CEO Rick Tomsic experienced the deficiency in futures products tailored to the retail trading cohort. Tomsic and his team of seasoned futures executives observed the many barriers to success for retail traders in the futures space, noting the:
- Poor regulatory standards from decentralized cryptocurrency exchanges, leading to account depletion and theft
- Considerable prices on futures contracts, leaving retail traders unable to participate in the price movements that regularly make fortunes for institutions
- Inability to participate in both upward and downward price movements and hedge against market downturns
- Leverage structure set by brokers made traders unable to take on risk responsibly, leaving them prone to account blowups
With NBFs, the Tradovate team reportedly addressed each of these concerns.
At 1/100th the price of a Bitcoin BTC/USD, NBFs are meant to drastically reduce the price needed to trade cryptocurrency while providing traders with the leverage needed to maximize their trading potential. In fact, with NBFs, traders can make use of the volatility of the cryptocurrency market for a price as low as 5 cents per contract.
Additionally, because they’re listed on Coinbase, a company listed on the Nasdaq Capital Markets, regulations are far more stringent on these instruments. Therefore, they’re reported and regarded as safer alternatives to options and futures contracts one may find on other unregulated exchanges.
Their nature as futures makes NBFs instruments capable of capturing price movements to both the down and upside. Tradovate took its affordability promises to the next level with NBFs, stipulating there would be no commissions, market data fees, subscription fees or inactivity fees unexpectedly tagged to NBF trades*.
In summary, with NBFs, retail traders are getting some of the most affordable instruments through which to trade cryptocurrency movements.
Click here to check out the next wave of Futures innovation for yourself.
*Exchange fee of $0.10, clearing fee of $0.09 and NFA fee of $0.02 still apply.
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