You might have noticed that the capital market has changed, particularly in the last few years. More specifically, you might have noticed that more and more every day people are actively trading in shares, stock, cryptocurrency, and other forms of assets.
In the past, most people would access these sorts of investments through a stockbroker or some sort of financial professional but thanks to the ease of the Internet, practically anyone can get into the market. Seeing that the market is expanding this much, there has been a push to create better services and more flexible options that benefit everyday traders.
Take CloseCross, a new Ethereum-based derivatives platform that recently scored its European Union MIFID license, which is a first for a blockchain-based derivatives trading platform. Formally opened its doors on May 31, 2021, the platform was created with a view to removing the middleman from the derivatives trading process, which is often an entry barrier to the market.
CloseCross and the Current Issues With the Market
There is a lot of money to be made within the derivatives market but oftentimes, smaller traders are shut out of it. There are two main issues responsible for this. First, the derivatives market is often too complicated for everyday, non-institutional investors to absorb and understand. Second, leverage often leads to losses larger than the amount they put in. So even if you are knowledgeable and know where the markets are going, you might not want to take the risk and thus, stay out of it.
This is what CloseCross is working to address. The user interface has been simplified for the point-and-click generation where you can enter a trade in 3 simple clicks. Select a market, predict the price, and place your commitment. Whether you want to predict prices for stocks, cryptocurrency, indexes, commodities, or forex; all contracts at CloseCross are unleveraged yet give you the chance of making huge returns if your price predictions are correct. The innovative multi-party predictions approach enables this limited risk yet higher returns possible.
All their products are also non-custodial which means that traders will always have control and access to their assets at any given time. In terms of fees, smaller investors are often discouraged from getting into the market due to the numerous fees they often have to pay on certain platforms that eat into their profit.
Now, we are seeing a wave of low or no-fee platforms hoping to attract smaller investors with better offerings. CloseCross does this as well, as only profitable trades attract a commission which is often as low as 0.25%. Unlike many platforms that have all manner of hidden fees that pop up from time to time, CloseCross does not charge fees for opening accounts, trading, or any other charges.
Finally, the platform ensures that incentives for derivatives are based on time. Should a trader make a prediction early that turns out to be correct, they will receive more profit as a result of that.
The Changing Landscape
Something very interesting is happening in the world of retail investment. From the GameStop saga earlier this year to platforms like CloseCross that only charge your profitable trades, there is a growing emphasis on the community among retail traders and more specifically, taking away the monopoly that big institutions have had on the market for so long.
This is because the market these days is not being driven solely by big hedge funds but also by everyday people and the system needs to be overhauled to reflect this and to accommodate them fairly. Platforms like CloseCross, which removes the power of the middleman and grants more access to investors, are just the beginning but this change in the market is likely to endure.