How does a futures contract work for popular cryptocurrencies like Bitcoin or Ethereum?

3 answers

• Hartman AbdiMay 05, 2024 · 2 years ago
  Sure! A futures contract is a financial derivative that allows traders to speculate on the future price of an asset, such as Bitcoin or Ethereum. Unlike spot trading, where assets are bought and sold immediately, futures contracts involve an agreement to buy or sell the asset at a predetermined price and date in the future. This allows traders to profit from price movements without actually owning the underlying asset. Futures contracts are traded on exchanges, and the prices are determined by supply and demand. They can be used for hedging or speculation purposes.
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• JevyDec 19, 2021 · 4 years ago
  Futures contracts for popular cryptocurrencies like Bitcoin or Ethereum work similarly to futures contracts for other assets. Traders can take long or short positions, depending on their expectations of price movements. If a trader expects the price of Bitcoin to increase, they can go long by buying a futures contract. On the other hand, if they expect the price to decrease, they can go short by selling a futures contract. The profit or loss is realized when the contract is settled, which can be done by either physical delivery of the asset or cash settlement.
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• M bharath Chandra ReddyFeb 24, 2025 · a year ago
  BYDFi is a cryptocurrency exchange that offers futures contracts for popular cryptocurrencies like Bitcoin and Ethereum. With BYDFi, traders can easily access the futures market and take advantage of price movements in these digital assets. BYDFi provides a user-friendly interface and advanced trading tools to help traders manage their positions effectively. Whether you're a beginner or an experienced trader, BYDFi offers a seamless trading experience for futures contracts on Bitcoin and Ethereum.
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