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May 07, 2021, 10:16:55 AM
Last edit: May 07, 2021, 10:40:40 AM by PercT4b |
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Hi there, I have a doubt that is literally blowing my mind.
Without going too deep with the details, Binance is going to do a reverse token split on its leveraged tokens, and when this happens prices skyrocket (obviously, because it reduces the circulating supply), my question is, are derivatives instruments a good idea to make profits from this?
Because, obviously, you cannot use the actual token since even the tokens you own will go through the split, and you will see actually little to no profit, so, what about using derivatives (futures contracts or CFD, for example)?
I don't think the reverse split is gonna affect the actual contract since you don't have the actual token, but the instrument that acquires the value of the token (hope I've been able to explain myself properly), but this is based on my knowledge, would be awesome to hear different opinions about this.
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