#EthereumFuture
What are Ethereum Futures?
Ethereum Futures are financial agreements that enable traders to buy or sell Ethereum (ETH) at a specified future date and an agreed-upon price, without the need to actually own the currency at the time of the contract.
The purpose of them:
Hedging against price volatility: They can be used as a means to protect the investor from sudden price changes.
Profiting from speculation: Traders can earn profits from price movements whether up or down.
How do they work?
Let's say you expect the price of Ethereum to rise, so you buy a futures contract at today's price and hope to sell it later at a higher price.
And if you expect the price to fall, you can "sell" a futures contract with the aim of buying it back later at a lower price.
Where are they traded?
On futures exchanges such as: CME Group, Binance Futures, Bybit, and others.
Important notes:
Futures contracts involve high risks, especially when using leverage.
They are not intended for beginners without a deep understanding of the market.