Derivatives
By CoinGecko | Updated on Mar 03, 2020
Derivatives are financial instruments whose value is derived from an underlying asset (e.g. Crude Oil, Gold, Bitcoin etc). Compared to spot markets where the underlying asset changes ownership, in derivatives markets, traders trade contracts rather than the actual assets.
Related Terms
Smart contracts
Self executing contracts on the blockchain without needing human executors or notary.
Market Maker
Participant of the market who creates buy and orders
Dump
A common term used to describe downward market movement, or to describe the action of selling an individuals holdings.
Directed Acyclic Graph (DAG)
Directed acyclic graphs refers to a data structure that is built in one single direction, yet branches out and never repeats.
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