Futures Contract
Contract to buy/sell crypto at an agreed price in the future — with leverage.
Crypto futures are financial contracts that obligate a buyer to buy (or seller to sell) a cryptocurrency at a predetermined price on a specific date. On crypto exchanges, perpetual futures have no expiry date.
Main characteristics:
•Leverage 1x-125x — you control more capital
•Long position — profit when price rises
•Short position — profit when price falls
•Funding rate — periodic fee between long and short positions
•Liquidation — if price moves against you enough, entire stake is lost
Risk example: $100 with 10x leverage = you control $1000. If price falls 10%, you lose all $100.
Futures are for experienced traders. The statistics are brutal — 80-90% of retail traders using leverage lose money long-term.