How do zero coupon swaps work in the context of digital currencies?

1 answers

• NanditaAug 15, 2024 · a year ago
  In the context of digital currencies, zero coupon swaps can be used by traders and investors to speculate on the future price movements of cryptocurrencies. By entering into a zero coupon swap, traders can profit from the price difference between the start and end of the swap period without actually owning the underlying digital currency. This allows for increased flexibility and leverage in trading strategies. However, it's important to note that zero coupon swaps are complex financial instruments and should only be used by experienced traders who fully understand the risks involved.
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