Coinbase Derivatives, the crypto exchange subsidiary, plans to launch the product on February 18, with new contracts being cash-settled monthly.
Crypto exchange Coinbase is set to launch Solana (SOL) futures contracts on February 18, according to a filing with the Commodity Futures Trading Commission (CFTC) on Friday.
Coinbase Derivatives, a subsidiary of Coinbase, filed the application for offering cash-settled futures contracts that expire on the last Friday of each month. The contracts will be physically delivered at a rate determined by the Volume Weighted Average Price (VWAP) of SOL on Coinbase.
Solana futures contracts allow market participants to speculate on SOL’s price movements without actually owning the cryptocurrency. This opens up a world of possibilities: traders can now use futures contracts to hedge against price risks, speculate on future price movements, or even create more complex trading strategies.
This move by Coinbase is in line with a broader trend in the crypto industry towards expanding product offerings and catering to institutional investors. Several other crypto exchanges, including Binance and FTX, already offer Solana futures contracts.
The launch of Solana futures contracts on Coinbase is also expected to increase liquidity in the SOL market, which could lead to tighter spreads and lower trading costs.
Solana investors are shorting the token within the current price range as it consolidates around $242. Shorting is a quick trade, aiming to capitalize on short-term price fluctuations within the range. The 1-hour chart appears to show a descending channel.
The top dotted line represents the traders’ invalidation point. If the price breaks above this line, the trade is considered invalid, and it is advised to exit the short position to avoid further losses.
The bottom of the range is the target price. If the price reaches this level, it is prudent to exit the short position with a profit. While shorting within the range, traders maintain a bullish overall outlook on Solana. This means believing in the token’s long-term potential. Additionally, shorting in this scenario allows traders to accumulate more SOL at a potentially lower price, increasing the overall position size when the price rebounds.
Disclaimer: The information provided on this website is intended for general informational purposes only and does not constitute professional financial advice. Users should conduct their own research and consult with a licensed financial advisor before making any investment decisions. By using this site, you acknowledge and accept that you are solely responsible for your investment choices and any associated risks.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.