#衍生品交易市场 I just saw the news that Architect Financial completed a $35 million funding round, and I suddenly realized that I really only have a superficial understanding of derivatives trading 😅

Founded by former FTX US President Brett Harrison, the company specializes in futures, options, and other derivatives, with a valuation approaching $200 million... This made me start wondering, how exactly does derivatives trading work? It seems much more complicated than spot trading, which I just started learning.

I have a question for everyone — why do institutional investors place such importance on the derivatives market? Is it because they can leverage trades to earn more profits? Or are there other risk management reasons? I’ve heard the risks are especially high, but it seems many professionals are still involved 🤔

I am still in the stage of learning spot trading honestly, but I feel I need to understand derivatives better to have a more comprehensive grasp of the crypto market. Are there any experts who can recommend some beginner-friendly resources for derivatives or share their own experiences? I especially want to know how newbies can avoid pitfalls!