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Choosing the best crypto derivatives trading platform is crucial for traders looking to leverage the potential of cryptocurrency markets. These platforms offer a way to access futures, options, and swaps, allowing traders to speculate on price movements or hedge existing holdings.
With so many options available, finding a reliable and user-friendly platform can significantly impact your trading strategy and potential returns. Let’s explore some key features that distinguish the top contenders in the market and how they can enhance your trading experience.
Factors to Consider When Choosing a Crypto Derivatives Trading Platform
In the domain of cryptocurrency derivatives trading, one’s choice of a platform is crucial. The first thing that should be considered is security. You want to choose a platform that has strong security measures such as two-factor authentication (2FA), cold storage for funds and a history of protecting clients’ assets from hacks.
The second consideration is variety of trading instruments available. Different types of derivative products like futures contracts, options or swaps offer more flexibility in terms of strategy. Ensure your choice has those instruments along with competitive fees and margins – this way you can adapt your trades to current market conditions most effectively.
Another aspect to look into is liquidity and trading volume on the chosen exchange. You need enough liquidity across all pairs traded on an exchange so that orders can be executed smoothly without significant slippage occurring. Also higher volumes usually mean tighter spreads due to increased participation from traders – which translates into better prices for you as a customer! Therefore it’s advisable always choosing platforms with good liquidity because they will ensure that there are no problems regarding this matter during high volatility periods when many people would like to enter or exit positions at once.
Besides, regulatory compliance cannot be underestimated when selecting the right crypto derivatives trading platform for yourself. It’s important to make sure whether given service operates within legal frameworks set up by different jurisdictions they serve customers from around the world . At minimum adherence guarantees legitimacy while also offering channels through which disputes may be resolved in case anything goes wrong between parties involved; thus reputable ones should disclose their status regarding regulation clearly indicating how much effort has been put towards achieving full compliance thereof hence fostering trust among users.
Finally but not least evaluate user interface and experience offered by potential platforms under consideration before signing up with them . A good design will have easy navigation through each section , clear instructions displayed at appropriate places , responsive support team etc
Expert Tips on Trading Crypto Derivatives
Trading crypto derivatives may be a good way to make money, but it is also tricky and calls for a nuanced attitude towards risk control as well as strategy execution. The first thing is to give risk management the highest priority. Define stop loss orders in clear terms and stick to them strictly so that you cut down on possible losses. You should also diversify your portfolio across different assets and types of derivative products with a view to spreading risk more effectively.
Secondly, keep yourself updated with what is happening in the market vis-a-vis trends and news. Cryptocurrency markets are known for their volatility which can be caused by external factors hence the need for one to be informed about any developments that could affect price movements. Use credible sources of information while at the same time ensuring that you conduct thorough research before making any trading decisions so that there are no surprises resulting from events that were not anticipated.
Moreover, come up with a disciplined trading strategy which you will stick to without fail. Whether scalping, swing trading or trend following is your preferred method, always ensure consistency throughout all these approaches because without it this whole thing might not work out as expected. Never let emotions guide your choices instead use either technical analysis alone; fundamental analysis only or both of them together when determining what moves next. Establishing such kind of system allows one take advantage whenever they surface while reducing impulsive actions driven by fear or greed.
Further still, exercise caution when using leverage since although being able to increase profits significantly too much exposure may lead into heavy losses thereby putting traders’ capital at risk unnecessarily. It is therefore important that traders are careful enough when employing leverage so as not overdo it beyond their tolerance levels of danger associated with particular positions taken under margin requirements awareness.
Finally but not least continually monitor and adjust your trades accordingly based on new developments within cryptocurrency markets because they keep changing rapidly from time to time thus requiring flexibility from dealers who must remain vigilant even after establishing initial positions which were profitable initially. Reflect on how well you have done in terms of performance during different periods while identifying places where there is still room for growth before tweaking strategies here and there so as to become better prepared over time especially given fast moving nature associated with this form of trading.
Feature table comparing various features across different cryptocurrency derivatives exchanges
Feature | BitMEX | Binance Futures | Bybit | FTX | Huobi Futures | OKEx Futures | Deribit | Kraken Futures | Bitfinex | Bitget | Phemex | PrimeXBT | Gate.io Futures | CoinFLEX | Delta Exchange | Bit.com | Bityard | BaseFEX | MexC | CoinEx Futures |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Leverage | Up to 100x | Up to 125x | Up to 100x | Up to 101x | Up to 125x | Up to 100x | Up to 100x | Up to 50x | Up to 100x | Up to 100x | Up to 100x | Up to 1000x | Up to 100x | Up to 100x | Up to 100x | Up to 100x | Up to 100x | Up to 100x | Up to 100x | Up to 125x |
Funding Rate | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | No | Yes | Yes | Yes | No | Yes | Yes | No | No | No | Yes |
Perpetual Futures | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Spot Trading | No | Yes | No | Yes | No | No | No | Yes | Yes | Yes | No | No | No | No | No | No | No | No | No | No |
Futures Trading | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | No | No | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Advanced Orders | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
API Support | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Fiat Support | No | Yes | No | Yes | No | Yes | No | Yes | Yes | Yes | Yes | No | Yes | No | No | Yes | No | No | No | Yes |
KYC | No | Yes | No | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Security | High | High | High | High | High | High | High | High | High | High | High | High | High | High | High | High | High | High | High | High |
20 Best Crypto Derivatives Trading Platform
1. BitMEX
Established in 2014, BitMEX (Bitcoin Mercantile Exchange) is a well-known derivatives exchange that specializes in perpetual contracts and high-leverage options. It enables traders to go long or short on different crypto derivatives with up to 100x leverage.
With an advanced trading interface which includes algorithmic trading through its robust API as well as funding mechanism for perpetual contracts unique only to them among others; they remain famous despite their complicatedness during high-volatility periods and intermittent functioning.
2. Binance Futures
Binance Futures is the futures trading arm of Binance, one of the largest cryptocurrency exchanges globally. Launched in 2019, it provides various types of derivative products such as perpetual contracts and futures contracts up to 125x leverage.
The platform is easy-to-use with deep liquidity pools for seamless transfer between spot markets and futures markets within Binance’s ecosystem integration while offering advanced charting tools which include indicators etcetera along side supporting APIs meant for algorithmic strategies creation amongst other features making retail investors’ lives easier when dealing with institutional-grade investments like these ones themselves according onto regulatory compliance efforts undertaken so far by this company where necessary also involving itself more deeply next time around.
3. Bybit
Bybit was founded back in 2018 as a place where people could trade cryptocurrency derivative products quite easily – mainly focusing on Bitcoin but also having Ethereum among other major altcoins too available for perpetual contracts at that time. Having known for its user-friendly interface coupled with high liquidity levels; many traders have found themselves working here simply due to their desire being capitalized upon minimal capital required them because leverages reach up until 100 times there.
Security wise cold storage is used alongside two-factor authentication measures introduced just case someone tries taking over your account without permission through hacking into it somehow.. Additionally, different order types are offered including limit orders, market orders as well conditional orders meant to cater for different types of traders who may find themselves using these features.
4. FTX
FTX is a cryptocurrency derivatives exchange that was founded in 2019. The platform has been praised for its variety of innovative products and features which it offers such as futures trading, options trading among other things like tokenized assets – making this one an all-inclusive site for those retail or institutional investors who have diversified their portfolio widely enough already.
Retailers can trade on margin with up to 101 times leverage while institutional traders get access to subaccounts along side portfolio margining plus quantitative trading interfaces among others too; henceforth making liquidity provision paramount alongside compliance being taken seriously here at FTX always.
5. Huobi Futures
Huobi Futures is a Huobi Global derivatives trading platform, which is one of the world’s leading cryptocurrency exchanges. Huobi Futures provides perpetual contracts, futures contracts and options contracts for various cryptocurrencies including Bitcoin, Ethereum and Litecoin since its establishment in 2018. It allows traders to take advantage of price volatility in digital asset markets with leverage up to 125x on perpetual contract.
Being easy-to-use, equipped with advanced trading tools and having deep liquidity are the main features making it suitable for all types of traders from individuals to institutions. Security is always put at top priority by Huobi Futures where they have implemented multi-tier system as well as routine checks on user funds protection measures.Being comprehensive in terms of products available for trading, having stable infrastructure for transactions processing and covering international market presence are some factors why many people still opt for Huobi Futures when it comes to exposure towards crypto derivatives.
6. OKEx Futures
OKEx Futures which was founded in 2014 as a part of the prominent Cryptocurrency Exchange OKEx provides futures trading. The platform offers a wide array of derivative products such as continuous swaps and futures contracts that help traders speculate on different cryptocurrencies with up to 100x leverage. It has advanced features like charting, indicators for trade analysis as well as an API built for algorithmic trading strategies.
In terms of security OKEX futures storage user funds offline (cold storage) and uses two-factor authentication (2FA) to protect accounts from being hacked into by unauthorized persons or entities; it also complies with industry best practices regarding these issues too. With its wide spectrum product offering coupled by deep liquidity provision together with regulatory compliance efforts this venue remains popular among traders looking for exposure into crypto-derivative markets.
7. Deribit
Deribit is an exchange that was formed back in 2016 dealing mainly in options and futures contracts tied to Bitcoins (BTC) Ethereum(ETH). The site seeks to provide institutional-grade infrastructure for digital asset derivatives trading while maintaining high levels of liquidity across all its listed instruments; thus allowing users trade between different strike prices expiry dates within one contract type – options or perpetual contracts could be traded with up to 100x leverage on the same instrument class (strike price).
As part of risk management procedures portfolio margining can be used alongside other risk mitigation measures so as create safe environment where such activities can take place without exposing participants undue losses arising out from market fluctuations while still ensuring transparency through audits carried out frequently enough not only ensure honest dealing but also safeguard against any possible manipulation attempts which may seek compromise fair play rules established within these platforms themselves. Deribit remains one of the leading market makers in Bitcoin Options space.
8. Kraken Futures
most reputable Cryptocurrency Exchange (Kraken). With its user-friendly interface, low latency, high availability as well robustness features it allows users to trade on a wide variety of products such as BTC/ETH futures contracts with leverage of up to 50x.
The site has been designed such way so that traders can have access deep liquidity pools competitive fees structures while also benefiting from advanced order types like stop loss take profit orders among others; additionally cold storage facilities are used store customer funds at all times which tends improve security levels greatly.
In terms of compliance efforts regulatory authorities this place works closely with known agencies thus ensuring that necessary checks done prior any transaction taking place meets required standards stipulated under law otherwise risk being held accountable for failing perform their duties accordingly. Overall Kraken futures represent safe haven those seeking participate into this form investment space.
9. Bitfinex
Bitfinex created back in 2012 offers various services including spot trading, margin trading and derivatives exchange services. Bitfinex’s perpetual swap contract allows traders access exposure towards different cryptocurrencies especially Bitcoin Ethereum (BTC ETH) without actually having own them; with leverage going up as high 100X these instruments have become popular among retail investors who want maximum profits within shortest possible time frames but without necessarily committing large amounts capital upfront due limited resources available at their disposal.
The platform provides advanced charting tools together indicators meant aid technical analysis well API support designed facilitate algorithmic trades execution on behalf users thus enhancing overall operational efficiency levels within system infrastructure itself . Cold storage multi-factor authentication (MFA) mechanisms employed enhance safety while still promoting ease use by customers who may lack sophisticated knowledge regarding digital assets management issues surrounding them such risks associated handling private keys directly.
10. Bitget
Established in 2018, Bitget is a cryptocurrency derivatives trading platform that serves global retail and institutional traders. The company provides for Bitcoin, Ethereum, and other major cryptocurrencies perpetual contracts that enable dealers to bet on price changes using leverage up to 100 times. It has an easy-to-use interface, advanced trading tools, and strong liquidity which suits all levels of expertise among traders.
Security is taken very seriously at Bitget where they hold user funds offline in cold storage as well as implementing two-factor authentication (2FA) for account protection among other measures. With low-cost trading fees relative responsiveness from customer support teams coupled with diverse range products offered; this has made Bitget become popular for individuals looking towards gaining quick exposure into crypto derivative markets.
11. Phemex
Established in 2019, Phemex is a cryptocurrency derivatives exchange that enables traders to access perpetual contracts for various cryptocurrencies such as Bitcoin, Ethereum, and Chainlink. With up to 100x leverage, traders can speculate on price movements with little capital required.
The system has an easy-to-use interface which is backed by advanced trading tools like competitive fees among others making it ideal for both retail and institutional traders alike. Security being one of their main concerns; Phemex stores user funds offline (cold storage) and uses two-factor authentication (2FA) to secure accounts from unauthorized access attempts. Its popularity comes from its ability to innovate reliably while ensuring customer satisfaction especially when it comes to providing exposure towards crypto-derivatives markets.
12 . PrimeXBT
Launched back in 2018 PrimeXBT is a platform for trading cryptocurrency derivatives where one can trade leveraged positions on various assets such as Cryptocurrencies, Forex, Commodities, and Indices.
The platform allows for up to 1000x leverage on cryptocurrencies which means that traders have the potential of making or losing huge amounts of money. It is equipped with advanced trading tools including charting capabilities; trading indicators; customizable interfaces etc., suitable even for beginners who are venturing into this field for the first time ever. They focus much on security hence they keep user funds offline through cold storage among other measures put in place like encrypted communication protocols which protect sensitive data from unauthorized people thus giving users peace of mind knowing that their investments are safe within the system at all times apart from charging low transaction costs compared to other platforms available in the market today.
Having multiple options when it comes selecting what you want trade coupled with fast processing speeds during placement or cancellation orders makes PrimeXBT more attractive over its competitors especially those seeking higher returns through increased leveraging across several different markets simultaneously.
13. Gate.io Futures
Established in 2013, Gate.io is a global cryptocurrency exchange that provides the futures trading platform known as Gate.io Futures.
Launched in 2019, this platform offers perpetual contracts for different cryptocurrencies such as Bitcoin, Ethereum and Litecoin with leverage of up to 100x. It is designed with an easy-to-use interface and advanced trading tools while boasting deep liquidity so it can be used by traders at any level of experience safely. Security is given priority on Gate.io Futures which entails using cold storage method for keeping user funds and requiring two-factor authentication (2FA) to access accounts among other measures.
Competitive trading fees coupled with responsive customer support plus having wide range of products make gate io futures a great place for traders who want exposure into crypto derivatives markets.
14. CoinFLEX
CoinFLEX is a physically settled futures cryptocurrency derivatives exchange created in 2019. With various cryptocurrencies like Bitcoin Cash (BCH), Ethereum Classic (ETC), CoinFLEX offers futures contracts settled by delivering the underlying asset instead of cash payment.
Stablecoin Futures are among some of its unique features along with FlexUSD; these stable coins were mainly developed for use within derivative trade systems where they would be most applicable. Transparency together with compliance are key considerations at CoinFLEX hence routine publication of trading volumes as well as subjecting themselves to audits aimed at ensuring market integrity is maintained throughout their operations period.
Physical settlement emphasis, low-costs charged during trades execution coupled with regulatory compliance commitment have all served towards making Coinflex one among highly regarded platforms providing opportunities for exposure into cryptocurrency derivative markets by many traders worldwide.
15. Delta Exchange
In 2018, Delta Exchange began as a cryptocurrency derivative exchange trading platform that deals with futures and options contracts for different virtual currencies like Bitcoin, Ethereum or Ripple. It offers leverage of up to 100x on futures and options which is 10 times more than any other exchanges. This means that traders can take positions bigger than their capital allows on this site only if they want to make use of price swings within these digital asset markets.
They have various sophisticated tools for traders such as charts displaying prices over time periods, technical indicators showing trends in the market etc., so it works well both for individual users who trade from home (retail) and professional investors who do business through institutions (institutional). For security purposes cold wallets store customers’ money whereas encrypted communication channels are used while transmitting sensitive data across networks thus making hacking impossible.
Besides being responsive when dealing with customer queries, fees charged by Delta Exchange for each transaction are quite competitive compared to those imposed by some other platforms; this coupled with availability of wide range products makes it an ideal place where people can invest their funds in order to benefit from changes in value associated with digital assets.
16. Bit.com
Bit.com is a cryptocurrency derivatives exchange owned by Matrixport, a financial services platform founded by former Bitmain CEO Jihan Wu. Bit.com, started in 2020, provides perpetual contracts for different cryptocurrencies like Bitcoin and Ethereum with leverage of up to 100 times.
The trading interface of the platform is easy to navigate and use which is why it is popular among new investors. This site also offers advanced trading tools as well as competitive fees for both retail traders and institutional traders who need them most in their transactions. One of its main focuses when it comes to protecting user accounts on this website would be security where they use cold storage wallets among other methods so that customers’ funds are always safe from hackers.
To ensure that only authorized persons have access to an account on the site, two-factor authentication (2FA) should be done; besides, it has not been left behind either since they introduced futures trading early this year thereby attracting many people who want exposure into such markets where there are higher returns possible but also greater risks involved.
17. Bityard
Founded in 2019, Bityard is a crypto derivatives exchange offering leveraged trading for various assets including cryptocurrencies, forex, commodities and indices. With up to 100x leverage on cryptos such as BTC or ETH — meaning users can multiply their gains (or losses) by a factor of 100 — Bityard has made a name for itself in an increasingly competitive market.
The platform sticks to core principles – simplicity and accessibility – which means newcomers can quickly get started without requiring any prior experience; while experienced hands will find ample functionality with features such as copy-trading tools etc., alongside this focus on ease-of-use they also strive hard towards keeping things secure and thus employ measures like cold storage facilities plus encrypted communication channels so that sensitive data does not fall into wrong hands during transmission across networks or storage devices used within its system infrastructure at large levels; also competitive fees are charged while orders can be filled quickly due to many assets being listed on the platform’s order book.
18. BaseFEX
MexC is a cryptocurrency derivatives exchange established in 2018, providing futures contracts for different digital currencies like Bitcoin, Ethereum and Litecoin. With MexC, you can leverage your investment by up to 100 times; thus traders can try to profit from price swings with higher potential gains in hand. This site comes with an easy-to-use interface which is perfect for beginners but at the same time it also includes all necessary tools for professional traders such as indicators or charting features among others.
Apart from that, trading fees are very competitive on this platform regardless if someone has been into trading cryptocurrencies before or not – anyone could start here! Security measures include storing user funds offline (cold storage) and 2FA authentication system among others to protect accounts against unauthorized access attempts.
One of the things that differentiate MexC from other platforms is its commitment towards being innovative while remaining reliable throughout times even during changes within legal requirements worldwide since they operate under full compliance globally recognized regulations too.
19. MexC
Established in 2018, BaseFEX is a cryptocurrency derivatives exchange that enables customers to trade perpetual contracts on Bitcoin and other major cryptos through a safe and efficient gateway. Traders may use up to 100x leverage on BaseFEX which means they only need small capital to take advantage of large market movements caused by news events or technical analysis signals etcetera.
For retail traders or institutional investors alike there are many advanced trading features available including charting tools with various indicators as well as risk management abilities built into the platform itself – making it suitable for all types of users who value their time spent managing investments.
However what sets us apart most is our commitment towards ensuring customer safety; we store users’ funds offline using cold storage methods combined with two-factor authentication through SMS verification process which makes it impossible for anyone else except yourself alone gaining access into your account without permission granted by you first hand.
In conclusion simplicity, reliability and satisfaction among our clients have always been at the forefront of everything we do here at BaseFEX – this is why so many people choose us when they want fast reliable access into cryptocurrency derivatives markets.
20. CoinEx Futures
CoinEx Futures is the futures trading platform that belongs to CoinEx. CoinEx, founded in 2017, is a global cryptocurrency exchange. CoinEx Futures was developed in 2020 and it allows traders to trade perpetual contracts of different cryptocurrencies like Bitcoin, Ethereum and Bitcoin Cash among others with up to 100x leverage. It is designed with an easy-to-use interface and is also equipped with advanced tools for trading plus deep liquidity which caters for both retail traders as well as those from institutions.
Security at CoinEx Futures comes first; hence they use measures such as keeping user funds in cold storage and having two-factor authentication (2FA) for accounts. This venue was created so that people can have access to different types of cryptocurrency derivatives markets easily because it has many products available, charges competitive fees on trades made there while ensuring that customers are always satisfied with their services offered by them.
Comparison and Insights
Comparing trading platforms can be perplexing and hard. This is why information from seasoned traders relating to various sides of a trade platform is crucial. One area which must be compared are platform fees. While some platforms may charge higher trading costs they might have more advanced features and better customer support than others that prioritize lower charges in their bid to attract a wider user base; thus, it’s essential for traders to balance between cost and value additions so as to decide on the best fitting platform vis-à-vis their objectives and budget.
The other area of concern should be the number or type of instruments available for trading purposes; because not all exchanges deal with same kind or number of derivative products like futures contracts or options for instance – hence each trader should consider what suits them most basing on this factor alone. For example there could be those who only want forex while others need stocks too etcetera but whatever it is one wants done during trade execution time, they would find an exchange capable of doing just that without any huddles at all!
Security cannot be overemphasized when talking about cryptocurrency related activities such as trading since transactions involve huge sums of money as well personal data which if leaked into wrong hands could cause serious damage. Thus before anything else investors’ focus must always remain on finding reliable exchanges where their funds shall always held safe until withdrawal; hence such sites must use multi-signature wallets alongside regular security checks (audit).
Moreover liquidity matters a lot especially when dealing with volatile markets like cryptos where prices change within seconds thereby making it necessary for one to have access towards more buyers/sellers in order avoid delays during execution stages while buying/selling assets at favourable rates – thus an individual needs know how liquid different pairs are traded on various platforms before settling down with specific venue(s) for conducting his/her business.
Additionally regulatory compliance also counts much since failure comply may lead severe penalties even loss whole investment capital thus among top considerations should include choosing only regulated exchanges that operate under legal frameworks within jurisdictions served; in addition being legitimized through licensing ensures fair treatment among traders plus providing channels for addressing complains incase they arise due regulatory issues etcetera.
Conclusion
In ratiocination, picking a platform for trading crypto derivatives requires one to consider several things if they are to succeed in the ever-changing and often volatile cryptocurrency markets. Traders need to make sure that security features come first, followed by trading fees and the range of available instruments which should be aligned with their strategies for trading as well as risk appetites. Furthermore, evaluating liquidity, volume traded on an exchange as well as regulatory compliance will help guarantee smoothness and safety while trading. Wise decisions can only be made by getting tips from those who have gone ahead successfully or comparing widely; this way individual requirements will be best met through choosing different platforms. Ultimately all these measures must be taken into account so that one may not regret later when everything has already happened because right foundation was laid at first place during selection process of crypto derivative exchanges.
FAQ’s
What are crypto derivatives?
Financial contracts whose value is derived from the underlying cryptocurrency assets. They include futures, options, swaps and other similar financial instruments.
How does crypto derivatives trading work?
Crypto derivatives trading involves speculating on the price movements of cryptocurrencies without owning the underlying assets. Traders can go long (buy) or short (sell) contracts based on their market predictions.
What are the benefits of trading crypto derivatives?
Potential for higher returns due to leverage; ability to profit in both rising and falling markets; increased liquidity; diversification of trading strategies.
What risks are associated with crypto derivatives trading?
High volatility; potential loss of entire investment; liquidation risk – especially when using leverage; regulatory uncertainty; less reputable platforms.
How do I choose a crypto derivatives trading platform?
Security measures; trading fees; range of trading instruments offered by the platform; liquidity provided by the exchange operator behind it; regulatory compliance efforts taken so far (if any); user interface design quality etc…
What is leverage in crypto derivatives trading?
Leverage allows traders to control larger positions with a smaller amount of capital. While it can amplify profits, it also magnifies losses therefore caution should be used when using leverage.
Are crypto derivatives regulated?
Regulations vary depending on jurisdiction . Many countries have no regulations at all while others have put up stringent measures against this type of investments.Traders should know what applies in their area before they start engaging in such activities