Initial Exposure to Financial Derivatives Dealing

In a recent article, the author shares their journey into the world of crypto derivatives trading on OKX. The author, who was initially captivated by the magic of their first short trade, soon realised that leverage can lead to both significant gains and losses.

While derivatives were once perceived as an exclusive tool for Wall Street bankers, the author emphasises that they are accessible to anyone, including individuals trading from a laptop. Crypto derivatives, in particular, allow traders to long when they think prices will rise and short when they believe they will fall, providing a level of control in a non-sleeping market.

The article encourages readers to stay updated on crypto news, not just from Kenya, but across Africa. It invites readers to join the Telegram community and a WhatsApp channel for ongoing discussions and updates. The author also suggests following them on X for the latest posts and updates.

Derivatives are often viewed as complex financial instruments, but the author no longer finds the term intimidating. They see derivatives as choices, offering opportunities beyond just predicting. Derivatives open opportunities for strategies beyond just predicting, such as arbitrage and disciplined plays.

The author also stresses the importance of understanding the contract being used before trading. There are two main kinds of crypto derivatives contracts: futures and perpetual contracts. Futures contracts expire on a set date, while perpetual contracts do not.

Respecting leverage is crucial, as it can be tempting but proper risk management is more important than adrenaline. Derivatives are referred to as "flexible" because they offer choices for traders beyond waiting for prices to only go up.

To the author, derivatives represent choices, opportunities, and strategies beyond just predicting. They encourage readers to approach derivatives trading with a clear understanding and a focus on risk management. After all, derivatives are about more than just chasing profits; they're about managing risk through strategies like hedging.