What are Futures?

Futures contracts are agreements to buy or sell an asset at a specific price on a future date. In cryptocurrency markets, futures trading allows investors to speculate on price movements or hedge existing positions without necessarily owning the underlying asset.

Contract Types

Quarterly Futures

• Fixed expiration dates
• Settlement every quarter
• Traditional futures model
• Physical or cash settlement

Perpetual Futures

• No expiration date
• Funding rate mechanism
• Most liquid crypto derivative
• Continuous price tracking

Key Features

Contract Specifications

• Contract size
• Tick size
• Settlement currency
• Margin requirements
• Expiration dates

Trading Mechanics

• Mark price
• Index price
• Funding rates
• Maintenance margin
• Liquidation process

Related Terms

• Perpetual Swaps
• Derivatives
• Margin Trading
• Leverage