#futures Futures refer to financial contracts that obligate the buyer to purchase or the seller to sell an asset at a predetermined price on a specific date. Here are some key points about futures [2]:
- *Types of Futures*: Futures contracts can be based on various underlying assets, including commodities (e.g., oil, gold), indices (e.g., S&P 500), currencies, and cryptocurrencies.
- *How Futures Work*: Futures contracts specify the quantity, quality, and delivery date of the underlying asset. They are traded on exchanges and are marked to market daily, meaning gains and losses are settled daily.
- *Uses of Futures*: Futures are used for hedging (reducing risk) and speculation (attempting to profit from price movements).
*Cryptocurrency Futures:*
- Cryptocurrency futures allow traders to bet on the future price of cryptocurrencies like Bitcoin or Ethereum.
- They are settled in the underlying cryptocurrency or in cash, depending on the contract.
If you have specific questions about futures or how they work, feel free to ask.