What Are Crypto Futures? A Beginner’s Guide For Traditional Market Traders
Authored by Paras Malhotra. Head – Trade, Custody and Business Operations at CoinDCX: As the crypto market continues to evolve and mature, Futures trading has emerged as a key instrument for market participants looking to capitalise on price volatility and effectively hedge their positions. Crypto Futures are derivative contracts designed to mirror the price movements of the underlying digital asset. These instruments offer the strategic benefits typically associated with traditional futures markets—such as leverage, risk management, and short-selling opportunities—while maintaining the flexibility of crypto-native infrastructure.
Consider this example: An investor with $100 in trading capital is optimistic about Bitcoin’s price trajectory. They initiate a long position on a BTC/USDT Futures contract using 10x leverage. This enables them to gain exposure to a $1,000 position—comprising $100 of their own capital and $900 borrowed from the exchange. This use of leverage amplifies both potential gains and risks, making position management a critical aspect of Futures trading.
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