What Does Futures Mean In Trading?

Crypto trading has become a fairly popular activity for modern people, who skillfully use different strategies and receive a lot of profit in this way. It is all due to the crypto market’s high volatility, which allows making a profit from assets’ price changes.

Crypto futures trading is a type of trading for relatively advanced users. Let’s find out what does futures mean in trading.

Futures Market Meaning

Such a market is an auction where parties “bet” on the price of commodities. It can be oil, gas, metals, etc. Futures mean derivative contracts that include the price of the commodity you set and the date when you owe to buy or sell this commodity. That is, the price is pre-agreed and cannot be changed regardless of its movements by the day the contract expires. That’s the core of the futures market. It requires much knowledge and expertise about the commodity and the factors that may impact its price. 

What does trading futures mean? It means you make your forecasts for the asset’s price and sell or buy it at the pre-determined rate on the day specified in your derivative contract. Predicting the asset’s price, you can pick leverage depending on how big a price boost you expect. It may be X2, X10, X50, etc. 

Futures Meaning Crypto

Crypto futures trading enables multiplying your initial investments many times and, thus, receiving a much bigger profit in the end. On the other hand, the same huge losses are waiting for you if your price prediction is wrong.

This type of trading is divided into two options:

  • Go long. You go long when you think the asset’s rate will grow.
  • Go short. You want to make a profit in the downward market trend.

Crypto futures is a highly risky type of trading. To learn more about it, visit the White Blog – a resource with valuable articles and guides on crypto trading. To practice futures trading, you may take advantage of a demo account on the WhiteBIT exchange.

About The Author

Muhammad Bilal

I am a highly skilled and motivated individual with a Master's degree in Computer Science. I have extensive experience in technical writing and a deep understanding of SEO practices.

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