Futures & Derivatives

Futures (futures contracts) explained

Futures trading

Quick definition: Futures are contracts to buy or sell an asset at a set price in the future. In crypto, futures let you go Long, go Short and use leverage without owning the actual coin.

There are two main types: dated futures (expiring weekly or quarterly) and perpetual contracts with no expiry.

Futures can be used to hedge risk or to speculate in both directions, but leverage means losses can far exceed those from buying spot.

Most beginners who lose money on futures do so because they use high leverage and don't cut their losses.

💡 Example

Instead of buying 1 BTC at $80,000, you post 8,000 USDT as margin to open a 1 BTC Long with 10x leverage.

📊 View real-time futures liquidations →

Related terms

Perpetual contract (Perpetual)A perpetual contract is a type of futures contract with no expiry date, so you can hold the position as long a…Spot tradingSpot means buying and selling actual coins at the current price: you pay and receive the coins in your wallet …LeverageLeverage means borrowing extra capital from the exchange to open a position larger than the money you have. It…Long and ShortLong means betting the price will rise; Short means betting it will fall. On futures, you can profit in either…

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Educational content for reference only, not financial advice. Leveraged trading carries the risk of losing your entire capital.