Derivatives are a powerful trading instrument now available on Bitazza. This feature allows you to trade on price movements across various asset classes without owning the asset. Whether the market is rising or falling, derivatives trading will unlock new ways to trade stocks, forex, indices, and more—all within a single platform via crypto.

What Are Derivatives?

A derivative is a financial contract where you trade on the difference in an asset’s price between the time you enter and exit a position. It is similar to Futures Trading in that you don’t own the asset. However, you profit (or lose) purely from price movements.

Example:
You open a position on Bitcoin at $1,000 and close at $1,200 → you earn the $200 difference (minus fees).

However, if the price drops to $800 instead, you take a $200 loss.

Key Features of Derivatives

1. Leverage: Trade Bigger with Less Capital

Derivatives let you amplify your buying power using margin.
Example: With 10x leverage, $100 gives you exposure to $1,000 in trades.

However, while Leverage can boost profits, it also increases the risk of losses or even liquidation.

2. Long & Short – Trade Either Way

• Go long if you think prices will go up.
  
  
• Go short if you think prices will go down.
  Example: If you Short gold at $2,000, and it falls to $1,950, you profit from the $50 drop.
  
  
  

3. Multi-Market Access – One Platform, Many Assets

With derivatives, you can trade:

• Forex: EUR/USD, GBP/JPY
  
  
• Stocks: Tesla, Apple, Amazon
  
  
• Indices: S&P 500, NASDAQ, DAX
  
  
• Commodities: Gold, Oil, Silver
  
  
• Crypto: BTC, ETH, and more

4. No Asset Ownership – Just Trade the Price

You don’t buy or store the underlying asset. Therefore, that means faster execution, lower barriers to entry, and flexible strategies for you to implement according to market conditions.

Risks to Watch Out For

While derivatives trading provide exciting opportunities, they also carry greater risks:

• Leverage Risk → Bigger gains or bigger losses. Use it wisely as price movements can swing both ways.
  
  
• Market Volatility → Sudden price movements can liquidate your position if you are trading in tight margins or without any stop-losses set up.
  
  
• Margin Calls → You may need to add funds if the market moves against you. Some of these movements can happen in seconds.
  
  
• Overnight Fees → Holding positions overnight can incur costs.
  
  

Risk management is key: use stop-losses, size your positions wisely, and never trade more than what you’re comfortable losing.

Get Started with Derivatives on Bitazza

1. Open the Bitazza app and go to the ‘Derivatives’ tab
   
   
2. Choose your market (crypto, stock, index, etc.)
   
   
3. Set your leverage and trading direction (long/buy or short/sell)
   
   
4. Place your order — and manage it in real-time.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.36% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.