What Are Futures?
Futures are contracts to buy or sell an asset in the future at a predetermined price. Unlike spot trading, where purchases happen instantly, futures allow for delayed execution of trades.
How Do Futures Work?
— The buyer and seller agree on an asset price, but settlement occurs in the future.
— For example, a trader signs a contract to buy Bitcoin at $50,000 in a month. If the price rises to $55,000, they make a profit; if it falls, they incur a loss.
— Futures trading does not require actual ownership of the asset, allowing traders to profit from both rising and falling markets.
Types of Futures:
🔵 Delivery Futures — the buyer receives the asset upon contract expiration.
🔵 Perpetual Futures — have no expiration date; traders pay a funding fee to hold positions.
🔵 Leverage Futures — enable trading with borrowed funds, increasing potential profits but also risks.
Why Trade Futures?
— Hedging — companies and investors use futures to protect against risks.
— Speculation — traders profit from price fluctuations without purchasing the asset.
— Leverage — the ability to trade with capital exceeding the deposit.
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Futures are contracts to buy or sell an asset in the future at a predetermined price. Unlike spot trading, where purchases happen instantly, futures allow for delayed execution of trades.
How Do Futures Work?
— The buyer and seller agree on an asset price, but settlement occurs in the future.
— For example, a trader signs a contract to buy Bitcoin at $50,000 in a month. If the price rises to $55,000, they make a profit; if it falls, they incur a loss.
— Futures trading does not require actual ownership of the asset, allowing traders to profit from both rising and falling markets.
Types of Futures:
🔵 Delivery Futures — the buyer receives the asset upon contract expiration.
🔵 Perpetual Futures — have no expiration date; traders pay a funding fee to hold positions.
🔵 Leverage Futures — enable trading with borrowed funds, increasing potential profits but also risks.
Why Trade Futures?
— Hedging — companies and investors use futures to protect against risks.
— Speculation — traders profit from price fluctuations without purchasing the asset.
— Leverage — the ability to trade with capital exceeding the deposit.
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