What are the potential risks or drawbacks of using deferred execution in the context of cryptocurrencies?

3 answers

• SiemJul 29, 2022 · 3 years ago
  One potential risk of using deferred execution in the context of cryptocurrencies is the possibility of price volatility. Since cryptocurrencies are known for their high price fluctuations, executing trades at a later time can result in significant changes in the value of the assets being traded. This can lead to potential losses or missed opportunities for traders. It is important for traders to carefully consider the potential risks associated with deferred execution and have strategies in place to mitigate these risks.
  527

  264
• Thuesen LockhartSep 05, 2024 · a year ago
  Another drawback of deferred execution in the context of cryptocurrencies is the potential for delays in trade execution. Cryptocurrency markets operate 24/7, and delays in executing trades can result in missed opportunities or unfavorable trade outcomes. Traders relying on deferred execution should be aware of the potential for delays and take appropriate measures to minimize the impact of these delays on their trading strategies.
  435

  145
• Shadmehr SalehiSep 08, 2021 · 4 years ago
  From BYDFi's perspective, deferred execution can offer certain advantages in terms of flexibility and risk management. However, it is important for traders to be aware of the potential risks and drawbacks associated with this approach. BYDFi recommends that traders carefully consider their trading goals and risk tolerance before using deferred execution in the context of cryptocurrencies. Traders should also stay informed about market conditions and be prepared to adapt their strategies accordingly to mitigate potential risks.
  532

  133