#Did_You_Know
Did you know what futures contracts in cryptocurrencies are, in brief? 💬
What are futures contracts? 🤔
Futures contracts are agreements to buy or sell a digital asset at a specified price in the future, without the need to actually own it. They are divided into two types:
🔗 Traditional contracts (with an expiration date)
🔗 Perpetual contracts (without an expiration date, with a funding rate)
🛡 Advantages of futures contracts:
💎 Leverage: Amplifying capital and increasing potential profits.
💎 Hedging: Protecting investments from market volatility.
💎 Speculation: Making profits whether in an uptrend (📈 Long) or downtrend (📉 Short).
⚠️ Risks of futures contracts:
❌ Liquidation: Loss of capital during adverse market movements.
❌ High volatility: Greater risks compared to traditional markets.
❌ Funding fees: Additional cost for perpetual contracts.
📈 Most popular futures trading platforms
Binance – CoinEx – Bybit – OKX
✅ Conclusion
Futures contracts offer great opportunities, but they are high risk. Therefore, they must be understood well and risks managed carefully.
Did you know? 🤔
