Futures Trading is a type of operation in which users trade contracts based on the price of a cryptocurrency, instead of buying or selling the real asset.
These contracts reflect the movement of the price of the underlying asset (for example, BTC or ETH) and allow users to open positions according to their market expectations.
Main characteristics of futures
• They do not imply direct ownership of the cryptocurrency.
• They allow trading both upward (Long) and downward (Short) movements.
• They require the use of margin to open positions.
• They can use leverage, which increases market exposure.
• They are subject to liquidation if the available margin is insufficient.
How do futures work?
When opening a futures position:
• The user deposits margin as collateral.
• The system calculates profits or losses according to the variation of the contract price.
• If the market moves against the position and the margin is not sufficient, the position may be automatically liquidated.
Difference between Spot and Futures
• In Spot Trading, the user buys or sells the cryptocurrency directly.
• In Futures Trading, the user trades a contract linked to the asset’s price.
Important information
Futures trading involves a high level of risk and is not suitable for all users.
It is recommended to fully understand how it works and risk management tools before trading.