What are Futures?

Crypto futures are derivative instruments whose value is derived from the underlying cryptocurrency. Investors and traders buy or sell cryptocurrency futures contracts that reflect the value of the underlying coin or token. This instrument allows participants to speculate on future price movements or to hedge expected price risk.

When traders purchase futures contracts, they have exposure to the associated cryptocurrency but don’t own it. Instead, they own a contract that enables them to trade the cryptocurrency at a predetermined price and a future date. Trading crypto futures enables users to augment their gains through the utilization of leverage offered by the trading platforms.

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