Just like any other type of trading, futures contracts come with a risk. Researching the market, using additional tools such as indicators and technical analysis, and establishing goals and risks for every trade can help mitigate the risks. Choosing a good broker is also crucial. A reputable exchange with virtual account functionality and reasonable fees allows its users to simplify and secure the entire trading process. What is Margin Trading and How Does it Work for Crypto? Futures trading is the act of buying and selling futures. These are financial contracts in which two parties – one buyer and one seller – agree to exchange an underlying market for a fixed price at a future date. Futures give the buyer the obligation to buy the underlying market, and the seller the obligation to sell at or before the contract’s expiry.
The definition of a Crypto Futures contract remains pretty much the same as crypto derivatives, but it differs in one critical aspect – the expiration date. While traditional futures contracts typically have an expiration date, crypto futures do not have an expiration date as they are perpetual futures contracts. Should You Trade Crypto Futures Contracts? A futures contract is an agreement to buy or sell an asset at a certain price, and at a specific time in the future.