We hear about Stocks everyday, almost 80% of all news revolves around the biggest companies in the world. But for those not living in the USA, how is it possible to get some exposure to exciting Blue Chip stocks? It’s not exactly a walk in the park.
In most cases the minimum purchase requirements or the costly transaction fees involved in getting exposure turns most Retail investors away.
FTX changes this. Tokenized Stocks allow retail investors to invest in even a small portion of a share, of some of the biggest companies in the world. Facebook, Amazon, Google or even Tesla just to name a few.
SO WHAT ARE TOKENIZED STOCKS?
You can think of tokenized Stocks as a synthetic version of an actual stock but being digital allows them to be sold anywhere in the world.
WHAT ARE THE BENEFITS OF TOKENIZED STOCKS?
1. They are always on, meaning they are traded 24/7 and not limited to the Traditional market hours.
2. Digital, this means that you can buy a fraction of a stock and that they are available anywhere in the world.
With FTX you only require a level 2 KYC and a further registration with CM – Equity in Germany. This can be done without leaving the FTX website. Moreover, CM – Equity is fully registered in Germany and a licensed financial institution permitted to offer these products.
The underlying Stocks are backed by CM – Equity, who have custodial power over the actual share, FTX issues a Tokenized version of that Share.
On FTX these Tokens are spot tokens and can be used as collateral or borrowed out for interest on the platform. Futures on these products are also available in order to allow traders to hedge their positions.
So if you’ve been waiting to get your hands on some Apple, Google, Microsoft, Facebook, or TESLA stock… now’s your chance!
Note that stocks can be highly volatile and illiquid, especially when their primary listing exchange is closed. Please exercise your judgement and caution when trading futures on tokenized stocks. Any risk that you take in your trades is your responsibility to manage. You might be liquidated if futures prices change.
Article by: Joe Zabbs
Source: Global Crypto
