Basics of cryptocurrency: What is cryptocurrency contract trading?
What are futures contracts?
In financial markets, a futures contract is an agreement to buy or sell an asset at a predetermined price at a specific time in the future. Unlike traditional spot markets, contract trading does not settle immediately. The trading parties trade contracts that are settled at a specific future time.
Futures contracts in traditional finance
In traditional financial systems, investors, companies, and governments use futures contracts to manage risk and hedge against asset price fluctuations. The value of such derivatives derives from the underlying asset and can be traded on over-the-counter markets or trading platforms.