What are Futures on Binance?
Futures contracts are financial agreements between two parties to buy or sell a specific asset (such as cryptocurrencies) at a predetermined price at a later time. On Binance, these contracts allow investors to trade based on their expectations of the rise or fall of asset prices, without needing to actually own the cryptocurrency itself.
How does it work?
* You do not need to own the asset: You are not buying the actual Bitcoin, but betting on the direction of its price.
* Profit in both directions: You can make profits whether the asset's price rises (Long position) or falls (Short position).
* Settlement date: Unlike traditional futures contracts that have a settlement date, Binance's perpetual futures contracts have no specific settlement date, but funding fees are paid periodically (usually every 8 hours) to keep the contract price close to the spot market price.