Derivative instruments are the spot of economic security in financial markets. They are utilised to shift risk from one person to another. You can consider derivatives as guaranteed contracts on the variation of value, represented as an underlying asset. Financial derivatives also perform it feasible for people to trade certain financial risks like interest rate risk, currency, equity, and commodity price risk, and credit risk people who are better filled, to exert or handle these risks. The last reference value cannot be identified with certainty, so the value of the financial derivative at maturity can only be evaluated. That suspicion has been commonplace among most of the principal performers in the financial markets. While many commercial organisations recognise the value in blockchain, the technology underpinning the trading of cryptocurrencies, attention surrounding the currency itself looked to restrict the desire of traditional financial market members.
The thesis of a derivative contract is straightforward: on the one hand, many people, companies, and institutions are viewing for a risk-free financial environment, where there is no notable variation in the price of particular assets. On the other hand, individuals, companies, and institutions are looking for economic changes because they desire to speculate on and benefit from them. For instance, a corporation that provides food will want to assure that the price of food will not be overly costly in 2019. The company requires predictability and is willing to pay a charge for it. On the other side, traders will desire to speculate on the price of food and will not care whether the price goes up or down, only that it will change a lot (following their forecasts). Traders are actively watching for volatility. So there are two characters of performers in the derivatives market: the person who wants to hedge, i.e., cover their risk, and the person who wants to be more exposed to danger, i.e., the speculator. The speculator is the counterparty to the hedger and takes the hedger’s risk. In practice, the hedging party will neither lose nor gain money during the duration of the derivative contract, and the speculator will either lose or gain more than if they did not enter into the bargain.
Vulnerabilities in investor handle beyond their investments and systemic risk in the current financial market base are the result of a blend of market breakdowns and fundamental stains deeply established in current financial markets. The utility of multiple financial markets, including long custodial chains and giant global counterparties for the development of advanced markets is not grievously discussed. The change in the technology paradigm with the introduction of systems for securities and derivatives financial markets can increase investor control, the efficiency of risk management and, to some extent, improve the distribution of systemic risk. It can thus build a more diverse and flexible commercial ecosystem. Arguably, the impact of technological change should lead to a reduction of industry rents for the benefit of end investors and of the end users of finance (entrepreneurs and businesses) enhancing market welfare. Therefore, the use of blockchain technology in financial markets can transform the structure and future direction of the financial services industry as a whole.
Decentralising traditional financial markets and leveraging the blockchain for its transparency and automation provides numerous benefits to reducing transactional and operational costs. Tokenisation of assets presents an opportunity to lower the barriers to entry for mainstream investors further and create more flexible, digital financial assets. Geco.one is a first project that deliverers the same functionality of financial instruments for the cryptocurrency market, making trading more attractive for existing and new users.
Geco.one is a stage that empowers supporters to securely finance in the cryptocurrency market using the skills and knowledge of experienced traders. Geco.one provides the platform where you have full control over the most critical issues related to investment in the cryptocurrency market by providing the highest security level of transactions through our PAMM system. One of the main features is a precise trader ranking based on multiple factors like risk management strategies and the history of every acquisition made. A Geco.one platform is a place where you have access to extensive knowledge supported by our experts’ in many areas such as investment, crypto-economics, and analysis of trader psychology.Geco.one is a multi-exchange trading platform with PAMM accounts facility, where traders are ready to do all the hard work for you. Traders will be able to create an unlimited number of PAMM accounts, making opportunities for an investor to profit from their skills and hard work. Thanks to a connection with multiple exchanges, traders can run several PAMM accounts on different exchanges simultaneously without any disruption.
Geco adopts the Ethereum Blockchain and ERC-20 token protocols standards to build a utility token. Its primary purpose is the utilisation of the platform and internal ecosystem. We want our coin to be tradable on major exchanges to provide the best possible trading option to all adopters. Each token will get burned each time its utilised on our platform, decreasing the number of tokens and delivering constant growth in value at the same time. The Geco.one platform is developing a unique utility token usable inside the ecosystem of the platform. The token designed on the Ethereum network and according to the ERC20 Standard. The functionality of the token is available in the Token economy model section.
Imagine giving your money to a trader, so he can make a profit for you when he makes one for himself — introducing cryptocurrency PAMM accounts by Geco.one.
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White paper: https://geco.one/static/files/whitepaper.pdf
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