AAX crypto futures
AAX derivatives trading platform is a Hong Kong marketplace licensed to operate in Malta and Estonia. Its creators emphasize reliability, security, and high speed of transactions. Initially, the project seemed ambitious, but then the developers managed to prove that they can bring their ideas to life. As a result, the platform quickly took a leading position and is now in the top 100 companies by volume of trades. Transactions can be made at high speed. Order processing takes no more than 800 microseconds. This puts the platform on par with modern crypto-giants.
It is a full-featured platform that allows you to make transactions with digital coins, use stepped tools for trading, follow the dynamics of prices in real time. There is a personal account on the site. By registering in it, the client will have access to the exchange's features.
In addition to the functional, there is an information section. It contains information about the actions taking place in the system. So, there is a discount company on tokens, a referral program, it is possible to take part in the lottery for an invitation. There is an educational department. It contains news and analytics, a guide for beginners, training materials for more advanced traders.
AAX cryptocurrency derivatives trading platform (Atomik Asset Exchange) was founded in 2018. However, the full-fledged launch did not take place until 19 months later. During this period, active testing was conducted. The idea of AAX cryptocurrency derivatives trading was to work out all the nuances and provide users with a ready functional product without bugs and bugs. Representatives of such companies as:
- HSBC is Britain's largest bank
- IBM is a software maker
- JPMorgan, an American financial holding company
As a result, they managed to create a platform that runs on software from LSEG Technilogy. Its use allows for a record speed of transactions.
The AAX exchange is centralized. The developers pay special attention to security. They protected the site as much as possible, provided tools to prevent fraudulent actions. As a result, they managed to get a reliable and functional platform.
The exchange works under the direction of CEO Toro Chan. In less than a year, he was able to bring the project to a leading position in the region. The key partner is the London Stock Exchange. The AAX uses their technology and focus on order execution, which is becoming an important indicator.
How to Trade on the AAX Exchange?
The AAX exchange not only allows you to exchange digital assets, but also provides users with a range of other tools, including:
- Futures trading
- Spot trading
How do AAX cryptocurrency derivatives work?
Cryptocurrency derivatives are a newly formed type of financial product. Today, the crypto market is a vast ecosystem of more than two thousand tokens and coins. And each of them focuses on a specific project based on blockchain technology. But some developments are truly innovative products, such as cryptocurrency derivatives, of which Bitcoin Futures is best known. Let's see how it works.
A derivative is a financial contract between two or more parties whose value is derived from the value of the underlying cryptocurrency. More specifically, it is a contract that regulates the purchase or sale of an asset in the future at a specific price.
Derivatives themselves have no value. Their value lies in what price movements await the cryptocurrency in the future. There are three main variants of such contracts - swaps, futures and options, which will be discussed in more detail below.
Reasons for using derivatives
Derivatives provide a number of benefits to modern financial markets, which is why they are becoming more and more popular every day:
- Determining the price of the underlying cryptocurrency. For example, the value of futures can serve as a reflection of the most accurate price of the commodity.
- Risk hedging. An investor can buy a derivative whose value moves in the opposite direction from the value of the cryptocurrency the investor is holding. Consequently, profits from the derivative are able to smooth out losses on the underlying asset.
- Providing access to inaccessible markets or assets. Through contracts, organizations can gain access to those trading venues or currencies that, for one reason or another, are not directly available to them.
- Making markets more efficient. It is generally recognized that trading cryptocurrency derivatives helps improve the efficiency of financial markets.
- Contracts provide the opportunity for asset repayment. Therefore, equilibrium in the value of the underlying asset and related derivatives is ensured.
- Protection against volatility. The main reason for the existence of derivatives is that legal entities and individuals want to reduce the level of risk for themselves and build protection against strong price fluctuations.
- Speculation. Cryptocurrency derivatives are in high demand among traders because they allow them to profit from price changes.
How to make money trading derivatives?
Traders earn money depending on the price fluctuations of the cryptocurrency of interest. All traders are partly at risk because no one can know for sure what the value of the currency will be in the future. If the asset becomes more expensive, the buyer stands to gain, if it becomes cheaper, the seller earns.
To increase the level of profit a trader can use the leverage. Leverage multiplies possible profit many times. The size of available leverage depends on the chosen trading platform. Also, a commission will have to be paid for the leverage.
Types of AAX derivatives in the Philippines
There are hundreds of variations of contracts on the market, but they can all be divided into three main categories.
AAX crypto futures in the Philippines
A futures derivative governs the sale of an item at a predetermined price in the future. These contracts are actively traded on bitcoin exchanges, with the platform acting as a middleman. It is impossible to amend the terms of a contract after it has been signed, just as it is impossible to change the terms of any other contract.
Contracts for exchange are made as follows:
- in specifically defined volumes
- in a specifically defined form
- for a certain period of validity
In addition, most exchanges use a daily reporting method, which means that all derivatives gains and losses are resolved on the day they are received. Credit risks are reduced in this way. It should be emphasized that while doing AAX crypto futures trading, the seller and buyer enter into contracts with the exchange rather than with each other.
The principle of options differs significantly from that of futures. Whereas under the futures both parties of the contract are obliged to execute a purchase or sale on a certain date, the option contract has a feature such as asymmetry. An option contract binds one party and allows the other party to make a decision later when it expires. Consequently, the favored party with the option pays some premium for it.
There are two types of options: call options and put options. The first gives the right (but not the obligation) to buy the cryptocurrency at a given price at a later time, while the second gives the right to sell at a predetermined value. Options, like futures, are traded on cryptocurrency exchanges.
Swaps are considered to be the most difficult market instruments to master. Such derivatives allow participants to exchange their financial flows. One party can transfer the cash flow to the other party. The most common example of such an action is changing a fixed interest rate to a floating rate. Traders can also decide to swap the underlying cryptocurrency or interest rates.
Companies like to use swaps because it helps them reduce cash risks. Typically, these derivative contracts are negotiated between individuals without the use of an exchange. The intermediaries may be investment banks, which take the risks for themselves.
Cryptocurrency exchanges for trading derivatives
Here is a brief description of exchanges that allow trading in cryptocurrency derivatives - their terms and trading products.
How to start AAX derivatives trading?
- Registration on the official site
On the AAX crypto exchange there are 2 forms of opening an account - with a cell phone or via email. An identification code for account activation is sent to the specified number of the user. If a newcomer registers via email, a link is sent to confirm the account. Immediately thereafter it is possible to log in.
- Verification of identity
To unidentified users, the owners of the trading platform allow not only to make deposits and exchange coins, but also to withdraw the earned funds. If you provide documents to confirm your personal data, the developers will assign the account to the first level of verification, which additionally opens the P2P platform and the function of quick coin purchase, as well as increases the withdrawal limit.
To move to the second level, you need to send documents for verification to confirm your residential address. After that, the user opens up the possibility of depositing in fiat currencies.
- Account security
The trading platform pays a lot of attention to ensuring the safety of its clients' data. The exchange adheres to the CCSS cryptocurrency security standards. These are recommendations for innovative methods of protection in the digital coin market. In addition to two-factor authentication, the developers of the site advise to connect the payment password. It is needed to protect transactions when depositing or withdrawing funds. Until this code is set, the user will not be able to withdraw their assets from the account.