[{"data":1,"prerenderedAt":349},["ShallowReactive",2],{"api/learn-center-post-en-comparing-traditional-and-cryptocurrency-derivatives":3,"footer-en":59,"learn/crypto-trading/comparing-traditional-and-cryptocurrency-derivatives-en-seo":257,"navigation-en-learn-center":262,"api/learn-categories-en":310},{"seo":4,"locale":24,"breadcrumbs":25,"excerpt":33,"featuredImage":34,"components":41,"title":5,"formattedPublishedAt":52,"geofencings":53,"category":54,"pagination":56,"campaignExternalId":7},{"title":5,"metaTitle":5,"metaDescription":6,"keywords":7,"metaRobots":7,"structuredData":8,"metaImage":9,"metaSocial":17,"canonicalURL":7,"localizations":18},"Comparing Traditional and Cryptocurrency Derivatives","Compare traditional vs. cryptocurrency derivatives: key differences in underlying assets, liquidity, risk, volatility, and market regulation.",null,{},{"url":10,"mime":11,"ext":12,"width":13,"height":14,"name":15,"alt":16},"bitstampImageUrl/Comparing_Traditional_and_Cryptocurrency_Derivatives_9658f29354_f6c0224d79.png","image/png",".png",900,451,"Comparing_Traditional_and_Cryptocurrency_Derivatives_9658f29354.png","",[],[19,22],{"pathname":20,"locale":21},"/es/learn/crypto-trading/comparing-traditional-and-cryptocurrency-derivatives/","es",{"pathname":23,"locale":24},"/learn/crypto-trading/comparing-traditional-and-cryptocurrency-derivatives/","en",[26,30],{"id":27,"text":28,"url":27,"asUrl":29},"/learn/crypto-trading/","Crypto trading",true,{"id":31,"text":5,"url":23,"asUrl":32},"comparing-traditional-and-cryptocurrency-derivatives",false,"\u003Cp>Compare traditional vs. cryptocurrency derivatives: key differences in underlying assets, liquidity, risk, volatility, and market regulation.\u003C/p>\n",{"url":35,"mime":36,"ext":37,"width":38,"height":39,"name":40,"alt":16},"bitstampImageUrl/Comparing_Traditional_and_Cryptocurrency_Derivatives_3bd0ee1499_8bff013f87.svg","image/svg+xml",".svg",1920,1080,"Comparing_Traditional_and_Cryptocurrency_Derivatives_3bd0ee1499.svg",[42],{"component":43,"props":44,"content":45,"secondaryContent":49,"ctas":50,"secondaryCtas":51,"ctasNoMarginTop":32},"section.full-text",{"centered":32,"withoutSectionContainer":32},{"text":46,"width":47,"align":48},"\u003Cp>\u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/what-are-derivatives/\">Derivatives\u003C/a> are a type of financial contract that derives value from an underlying asset (like gold).  \u003C/p>\n\u003Cp>They are used by more advanced traders to gain exposure to assets without directly purchasing the underlying since they offer benefits such as \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/what-is-leverage-trading/\">leveraged trading\u003C/a> and the opportunity to set up sophisticated strategies to optimize profits and \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/how-to-hedge-cryptocurrency-investments-using-derivatives/\">hedge risks\u003C/a>.  \u003C/p>\n\u003Cp>The assets underlying traditional financial derivatives are the same assets traded on financial markets – stocks (like Apple or General Motors), commodities (like gold or oil) and bonds. In general, the more \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/what-is-liquidity/\">liquid\u003C/a> the market for a given asset, the higher the demand will be for derivatives on that same asset.  \u003C/p>\n\u003Cp>Derivatives can be classified by contract type. For each type, there is always a contract seller (who may also be the contract writer) and a contract buyer.  \u003C/p>\n\u003Cp>A \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/what-are-futures/\">future,\u003C/a> or forward, is a contract for the future sale of a given asset at a fixed price on a set date. The obligation to conclude the sale is binding; however, the contract can specify settlement in cash rather than the asset itself. Futures are typically standard contracts traded on exchanges, while forwards are more customizable instruments traded over the counter between institutions and enterprises.  \u003C/p>\n\u003Cp>An option is a contract that conveys the right, but not the obligation, to buy or sell a particular asset for a fixed price, known as the strike price, on or before the contract's expiry date. Options can be traded on exchanges or over the counter.  \u003C/p>\n\u003Cp>A swap is a contract for the financial exchange of cash flows or liabilities between two entities. They are only traded as over-the-counter instruments between institutions and corporate entities.  \u003C/p>\n\u003Ch2>Cryptocurrency derivatives comparison\u003C/h2>\n\u003Cp>The headline differences when comparing derivatives markets are the types of underlying assets and the types of derivatives contracts to trade. \u003C/p>\n\u003Cp>\u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/how-to-trade-cryptocurrency-derivatives-a-beginners-guide/\">Cryptocurrency derivatives\u003C/a> are financial instruments tied to the price of a cryptocurrency, with \u003Ca href=\"https://www.bitstamp.net/markets/btc/eur/\">Bitcoin\u003C/a> (BTC) and \u003Ca href=\"https://www.bitstamp.net/markets/eth/eur/\">Ethereum\u003C/a> (ETH) being the most common due to their high liquidity and widespread adoption in the market.  \u003C/p>\n\u003Cp>Cryptocurrency derivatives include futures and options like traditional markets, whereas swaps are not typically used. However, the crypto markets originated a new type of derivative called \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/what-are-perpetual-futures-contracts/\">perpetual futures\u003C/a> contracts, or perpetuals. These contracts don’t have an expiry date; instead, they settle periodically based on a funding rate that reflects the delta between the spot market price and the contract price.  \u003C/p>\n\u003Ch2>Key similarities and differences when comparing derivatives markets\u003C/h2>\n\u003Cp>There are several other differences between traditional financial vs cryptocurrency derivatives.  \u003C/p>\n\u003Ch3>Regulatory landscape\u003C/h3>\n\u003Cp>Most types of derivatives trading are regulated by financial authorities, with strict penalties for operators who don’t comply. This can include assigning partial responsibility for trading risk to brokers or issuers of derivatives contracts.  \u003C/p>\n\u003Cp>While some cryptocurrency derivatives trading is regulated or compliant, crypto they are traded on largely \u003Ca href=\"https://www.bitstamp.net/learn/crypto-101/the-evolution-of-cryptocurrency-regulation/\">unregulated markets\u003C/a>. While the centralized markets are now subject to regulations such as the FATF Travel Rule, requiring a minimum level of \u003Ca href=\"https://www.bitstamp.net/learn/security/know-your-customer-kyc/\">Know-Your-Custome\u003C/a>r and \u003Ca href=\"https://www.bitstamp.net/learn/security/what-is-anti-money-laundering-law-aml/\">anti-money laundering\u003C/a> checks, it’s still commonplace for decentralized exchanges to operate without such measures. While regulated markets don’t offer any protection against trading losses, they can protect traders from the worst effects of bad actors.  \u003C/p>\n\u003Cp>The offer of cryptocurrency derivatives to retail traders is outlawed in some markets, such as the US.  \u003C/p>\n\u003Ch3>Liquidity\u003C/h3>\n\u003Cp>Traditional derivatives markets, often centralized, are known for their deep liquidity and efficiency, which allows traders to execute large trades with minimal slippage and tight bid-ask spreads. \u003C/p>\n\u003Cp>In the crypto markets, liquidity is limited to BTC and ETH derivatives. However, even for those instruments, liquidity is fragmented across multiple exchanges and trading platforms. Trading crypto-assets is, therefore, likely to come with more \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/what-is-slippage/\">slippage\u003C/a> and larger spreads than traditional derivatives.  \u003C/p>\n\u003Cp>It’s also worth bearing in mind that liquidity can be a function of available leverage, implying that the market may not be as stable as it seems. A sudden market crash could result in mass deleveraging, resulting in a dramatic loss of liquidity.  \u003C/p>\n\u003Ch3>Risk and volatility\u003C/h3>\n\u003Cp>The volatile nature of the cryptocurrency markets makes them attractive to many traders since they offer plenty of speculative opportunities. However, volatility comes with some amount of risk since the market can quickly move against a profitable position.  \u003C/p>\n\u003Cp>Several factors can also conspire to increase risk. As mentioned, low liquidity can create slippage, which further eats into trading profits. Cryptocurrency derivatives trading is often also available with \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/understanding-margin-and-leverage-in-crypto-derivatives/\">high leverage\u003C/a>, which can go up to as much as one hundred times the trader’s available collateral or even more.  \u003C/p>\n\u003Cp>High leverage can amplify the risk of losses as well as gains, so should be used with caution. Experienced traders use risk management techniques such as trading with only a small percentage of their portfolio and planning the entry and exit points for a trade.  \u003C/p>\n\u003Ch3>Market access and participation\u003C/h3>\n\u003Cp>Most traditional derivatives markets are exclusively comprised of \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/retail-institutional-and-high-frequency-trading/\">institutional and professional\u003C/a> traders due to the need to meet certain criteria, such as minimum capital requirements and an understanding of the markets.  \u003C/p>\n\u003Cp>In contrast, many cryptocurrency derivatives markets are accessible to, and heavily comprised of, retail traders. \u003C/p>\n\u003Ch3>Centralized vs. decentralized\u003C/h3>\n\u003Cp>All traditional derivatives trading, and most cryptocurrency derivatives trading, takes place on centralized marketplaces, where the trading software and associated infrastructure are managed by a single entity. Funds must be deposited on the exchange or with a broker to be able to trade.  \u003C/p>\n\u003Cp>There is a relatively small \u003Ca href=\"https://www.bitstamp.net/learn/web3/what-is-decentralized-finance-defi/\">DeFi\u003C/a> segment of decentralized cryptocurrency derivatives traded on platforms, including \u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-jupiter-jup/\">Jupiter\u003C/a> and \u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-dydx/\">dYdX\u003C/a>. Decentralized derivatives are traded as on-chain instruments using smart contract infrastructure to manage transactions via self-custodial \u003Ca href=\"https://www.bitstamp.net/learn/crypto-101/how-to-choose-the-right-crypto-wallet/\">crypto wallets\u003C/a>.  \u003C/p>\n\u003Ch2>Traditional vs. crypto derivatives essentials\u003C/h2>\n\u003Cul>\n\u003Cli>Traditional derivatives, comprising futures, forwards, options, and swaps, are issued based on traditional assets, including stocks, commodities, and bonds.  \u003C/li>\n\u003Cli>Cryptocurrency derivatives, comprising futures, perpetual futures, and options, are issued based on crypto-assets, most commonly BTC and ETH.  \u003C/li>\n\u003Cli>Crypto derivatives markets tend to be less liquid, more volatile and risky, and with a less regulated status than their traditional counterparts.\u003C/li>\n\u003C/ul>\n","full","left",{"text":16},[],[],"September 10th, 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Network","/lightning-network-node/",{},{},{"noFollow":32,"isExternal":32,"name":188,"value":189,"isEmail":32,"isPhoneNumber":32,"isText":32,"showOnDesktop":29,"showOnMobile":29,"attachment":190,"geofencings":191},"Market Details","/market-details/",{},{},{"title":193,"content":16,"items":194},"Address",[195,199,203,207],{"noFollow":32,"isExternal":32,"name":196,"value":16,"isEmail":32,"isPhoneNumber":32,"isText":29,"showOnDesktop":29,"showOnMobile":29,"attachment":197,"geofencings":198},"Bitstamp Ltd",{},{},{"noFollow":32,"isExternal":32,"name":200,"value":16,"isEmail":32,"isPhoneNumber":32,"isText":29,"showOnDesktop":29,"showOnMobile":29,"attachment":201,"geofencings":202},"5 New Street Square",{},{},{"noFollow":32,"isExternal":32,"name":204,"value":16,"isEmail":32,"isPhoneNumber":32,"isText":29,"showOnDesktop":29,"showOnMobile":29,"attachment":205,"geofencings":206},"London, EC4A 3TW",{},{},{"noFollow":32,"isExternal":32,"name":208,"value":16,"isEmail":32,"isPhoneNumber":32,"isText":29,"showOnDesktop":29,"showOnMobile":29,"attachment":209,"geofencings":210},"United Kingdom",{},{},{"title":212,"content":16,"items":213},"Contact",[214,219,223,227,231,235,240,245,250],{"noFollow":32,"isExternal":32,"name":215,"value":216,"isEmail":32,"isPhoneNumber":32,"isText":32,"showOnDesktop":29,"showOnMobile":29,"attachment":217,"geofencings":218},"Customer support","/customer-support/",{},{},{"noFollow":32,"isExternal":32,"name":220,"value":220,"isEmail":29,"isPhoneNumber":32,"isText":32,"showOnDesktop":29,"showOnMobile":29,"attachment":221,"geofencings":222},"info@bitstamp.net",{},{},{"noFollow":32,"isExternal":32,"name":224,"value":224,"isEmail":29,"isPhoneNumber":32,"isText":32,"showOnDesktop":29,"showOnMobile":29,"attachment":225,"geofencings":226},"press@bitstamp.net",{},{},{"noFollow":32,"isExternal":32,"name":228,"value":228,"isEmail":29,"isPhoneNumber":32,"isText":32,"showOnDesktop":29,"showOnMobile":29,"attachment":229,"geofencings":230},"support@bitstamp.net",{},{},{"noFollow":32,"isExternal":32,"name":232,"value":232,"isEmail":29,"isPhoneNumber":32,"isText":32,"showOnDesktop":29,"showOnMobile":29,"attachment":233,"geofencings":234},"complaints@bitstamp.net",{},{},{"noFollow":32,"isExternal":32,"name":236,"value":237,"isEmail":32,"isPhoneNumber":29,"isText":32,"showOnDesktop":29,"showOnMobile":29,"attachment":238,"geofencings":239},"+44 20 3868 9628","+442038689628",{},{},{"noFollow":32,"isExternal":32,"name":241,"value":242,"isEmail":32,"isPhoneNumber":29,"isText":32,"showOnDesktop":29,"showOnMobile":29,"attachment":243,"geofencings":244},"+1 800 712 5702","+18007125702",{},{},{"noFollow":32,"isExternal":32,"name":246,"value":247,"isEmail":32,"isPhoneNumber":29,"isText":32,"showOnDesktop":29,"showOnMobile":29,"attachment":248,"geofencings":249},"+352 20 88 10 96","+35220881096",{},{},{"noFollow":32,"isExternal":32,"name":251,"value":252,"isEmail":32,"isPhoneNumber":29,"isText":32,"showOnDesktop":29,"showOnMobile":29,"attachment":253,"geofencings":254},"+65 3105 1676","+6531051676",{},{},"\u003Cp>Please read the general \u003Ca href=\"/legal/risk-warning/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Risk Warning\u003C/a>, and \u003Ca href=\"/legal/uk-investment-risk-warning/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Risk Summary\u003C/a> for UK residents before investing in crypto-assets. \u003C/p>\n\u003Cp>Crypto-assets services are provided by the following Bitstamp legal entities depending on client residency: (1) Bitstamp Europe S.A., which is authorized by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg as a payment institution (licence number Z00000012) and crypto-asset service provider (licence number N00000003); Registered address: 40, avenue Monterey, L-2163 Luxembourg, Grand Duchy of Luxembourg; Registration number: B196856; (2) Bitstamp UK Ltd., which is registered with the Financial Conduct Authority (FCA) in the UK for the provision of certain cryptoassets activities under the Money Laundering Regulations (Firm Reference Number 978690); Registered address: 5 New Street Square, EC4A 3TW London, United Kingdom; Registration number: 14174243; (3) Bitstamp Ltd.with its registered address at 5 New Street Square, EC4A 3TW London, United Kingdom and registration number: 8157033; (4) Bitstamp Global Ltd., which is registered as a Virtual Asset Service Provider in the British Virgin Islands and is supervised by the British Virgin Islands Financial Services Commission (FSC); Registered address: Floor 4, Banco Popular Building, Road Town, Tortola VG1110, British Virgin Islands; Registered number: 2086429; and (5) Bitstamp Asia Pte Ltd, which is authorized by the Monetary Authority of Singapore (MAS) as a major payment institution (licence number PS20200667); Registered address: 63 Chulia Street, OCBC Centre East, #15-01, Singapore 049514; Registered number: 202016687K;\u003C/p>\n\u003Cp>Virtual currency services to US residents are provided by Bitstamp USA, Inc., which is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Licensed as a Money Transmitter by the New York State Department of Financial Services. Review a \u003Ca href=\"/legal/usa-inc/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">list of its licenses and other registrations\u003C/a> (NMLS number \u003Ca href=\"https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1905429\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">1905429\u003C/a>) for more information; Registered address: 85 Willow Road, Menlo Park, CA 94025, United States of America; Registered number: 5481543.\u003C/p>\n\u003Cp>Investment services with regards to trading in crypto derivatives are provided by Bitstamp Financial Services Ltd., which is authorized and supervised by the Slovenian Securities Market Agency (ATVP) as a MiFiD investment firm. Trading crypto derivatives carries significant risks and may result in substantial losses. Please trade responsibly and ensure you understand the associated risks. You can find more about the risks \u003Ca href=\"/legal/financial-services/general-terms-and-conditions/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here\u003C/a>. To help you understand the risks involved we have put together a series of \u003Ca href=\"/derivatives/key-information-documents/\" target=\"_blank\" rel=\"noopener noreferrer\">Key Information Documents (KIDs)\u003C/a> highlighting the risks and rewards related to each derivatives contract. Crypto derivatives trading is not available to customers in the US, Canada, Japan and some other countries. Bitstamp Financial Services Ltd. does not provide crypto-asset services.\u003C/p>\n\u003Cp>To find out more about which Bitstamp entity you receive services from, please check the Profile/My information in your Bitstamp account. You can read more about our legal terms, policies and disclosures \u003Ca href=\"/legal/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here\u003C/a>.\u003C/p>\n","\u003Cp>All rights reserved © 2026 Bitstamp by Robinhood. \u003Ca href=\"https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1905429\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">NMLS #1905429\u003C/a>\u003C/p>\n",{"description":6,"ogDescription":6,"ogImage":258,"twitterImage":258,"twitterSite":259,"twitterCreator":259,"twitterCard":260,"twitterTitle":5,"twitterDescription":6,"titleTemplate":261},"https://assets.bitstamp.net/msc/_ipx/enlarge_true&f_png&fit_cover&q_85&s_1200x630/bitstampImageUrl/Comparing_Traditional_and_Cryptocurrency_Derivatives_9658f29354_f6c0224d79.png","@Bitstamp","summary_large_image","%s",{"items":263,"ready":29,"platformButtonText":306,"backButtonText":307,"logInButtonText":308,"signUpButtonText":309},[264,268,272,275,278,281,284,289,292,297,302],{"headerName":265,"sidemenuName":136,"url":137,"noFollow":32,"showInHeader":29,"showInSidemenu":29,"geofencings":266,"submenu":267,"tag":16},"Institutions",{},[],{"headerName":128,"sidemenuName":128,"url":129,"noFollow":32,"showInHeader":29,"showInSidemenu":29,"geofencings":269,"submenu":270,"tag":271},{},[],"NEW",{"headerName":151,"sidemenuName":151,"url":152,"noFollow":32,"showInHeader":29,"showInSidemenu":29,"geofencings":273,"submenu":274,"tag":16},{},[],{"headerName":108,"sidemenuName":108,"url":109,"noFollow":32,"showInHeader":29,"showInSidemenu":29,"geofencings":276,"submenu":277,"tag":16},{},[],{"headerName":118,"sidemenuName":118,"url":119,"noFollow":32,"showInHeader":29,"showInSidemenu":29,"geofencings":279,"submenu":280,"tag":16},{},[],{"headerName":123,"sidemenuName":123,"url":124,"noFollow":32,"showInHeader":29,"showInSidemenu":29,"geofencings":282,"submenu":283,"tag":16},{"geofencing-uk":29},[],{"headerName":285,"sidemenuName":285,"url":286,"noFollow":32,"showInHeader":29,"showInSidemenu":29,"geofencings":287,"submenu":288,"tag":16},"Markets","/markets/",{},[],{"headerName":113,"sidemenuName":113,"url":114,"noFollow":32,"showInHeader":29,"showInSidemenu":29,"geofencings":290,"submenu":291,"tag":16},{},[],{"headerName":293,"sidemenuName":293,"url":294,"noFollow":32,"showInHeader":29,"showInSidemenu":29,"geofencings":295,"submenu":296,"tag":16},"Blog","https://blog.bitstamp.net/",{},[],{"headerName":298,"sidemenuName":298,"url":299,"noFollow":32,"showInHeader":29,"showInSidemenu":29,"geofencings":300,"submenu":301,"tag":16},"Learn","/learn/",{},[],{"headerName":303,"sidemenuName":303,"url":109,"noFollow":32,"showInHeader":32,"showInSidemenu":29,"geofencings":304,"submenu":305,"tag":16},"Get Bitstamp by Robinhood app",{},[],"Go to platform","Back","Log in","Get started",[311,315,319,323,327,329,333,337,341,345],{"title":312,"url":313,"geofencings":314},"Blockchain technology","/learn/blockchain/",{},{"title":316,"url":317,"geofencings":318},"Company profiles","/learn/company-profiles/",{},{"title":320,"url":321,"geofencings":322},"Crypto 101","/learn/crypto-101/",{},{"title":324,"url":325,"geofencings":326},"Crypto definitions","/learn/crypto-definitions/",{},{"title":28,"url":27,"geofencings":328},{},{"title":330,"url":331,"geofencings":332},"Cryptocurrency guide","/learn/cryptocurrency-guide/",{"geofencing-uk":29},{"title":334,"url":335,"geofencings":336},"People profiles","/learn/people-profiles/",{},{"title":338,"url":339,"geofencings":340},"Security","/learn/security/",{},{"title":342,"url":343,"geofencings":344},"Tutorials","/learn/bitstamp-tutorials/",{},{"title":346,"url":347,"geofencings":348},"Web3","/learn/web3/",{},1776263772242]