Derivatives Market
By CoinGecko | Updated on Mar 03, 2020
A market for derivatives which are instruments such as futures or options whose value is derived from an underlying asset.
Bitcoin is one of the most popular underlying asset for derivative instruments which range from options, futures to perpetual swaps.
Related Terms
Option
It is a financial instruments that refers to a contract offers the buyer the right to buy or sell an underlying assets at a specified price and time.
Custody
Protective care or guardianship of an asset.
Fully Diluted Valuation
Fully Diluted Valuation (FDV) is the theoretical market capitalization of a coin if the entirety of its supply is in circulation, based on its current market price. The FDV value is theoretical as increasing the circulating supply of a coin may impact its market price. Also depending on the tokenomics, emission schedule or lock-up period of a coin's supply, it may take a significant time before its entire supply is released into circulation.
Smart contracts
Self executing contracts on the blockchain without needing human executors or notary.
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