Crypto Futures are futures contracts that obligate traders to buy or sell cryptocurrency at a certain price and date in the future. These contracts are usually valid for an unlimited period, known as perpetual contracts.

In crypto futures trading, traders make a commitment to buy or sell a certain amount of cryptocurrency at an agreed price in the future. For example, if the current price of Bitcoin is $50,000, a trader can buy a Bitcoin futures contract at $51,000 per BTC.

Crypto futures contracts generally do not require physical delivery of assets, but are instead settled in cash based on the price difference at the time the contract expires. Traders can close their positions before the expiration date to realize profits or losses.

Crypto futures offer several benefits, such as the ability to hedge against price volatility, as well as providing leverage to increase market exposure. However, futures trading also has higher risks than spot trading.



Examples of Crypto Futures usage in a sentence

“The crypto investor opened a long position on an Ethereum futures contract in hopes of profiting from future increases in Ethereum prices.”

“Crypto traders who are concerned about a decline in Bitcoin prices can use futures contracts to protect their portfolios from adverse price movements.”

“The crypto trading platform offers perpetual futures contracts, which allow traders to open and close positions at any time without an expiration date.”

#TipsTradingFutures #FutureTarding #Binance #Write&Earn

$BNB $BTC $ETH