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The Trump administration has opened American markets to highly leveraged perpetual futures, a crypto derivative that market participants have labeled the most dangerous product in the asset class.
US day traders are now flocking to the instruments. The product Perpetual futures are a crypto derivative with no expiration date.
Unlike standard futures, which settle on a fixed schedule and require traders to close or roll positions, perpetual futures allow traders to hold leveraged exposure indefinitely.
The leverage multiplies moves in the underlying asset, producing outsized gains or losses relative to the initial position. The structural risk is in that combination.
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