What does it mean to trade futures?

[Fidelia]

I have been hearing people talking about trading futures in crypto and I also see something like that on Binance. What does futures trading mean when it comes to crypto trading?

 

[Bisolami]

I have been hearing people talking about trading futures in crypto and I also see something like that on Binance. What does futures trading mean when it comes to crypto trading?

It simply means that you have an idea of what the next price is likely to be or you know if the market will pump or dump

 

[Stardom22]

Trading of the future is all about investing in the crypto depending on the movement of the crypto prices in the future.

 

[Ratine]

I think it's the ability to trade depending on the forecast on the movement of the cryptocurrency price.

 

[Niyi Briggs]

It is a situation where you enter a speculative contract with a person to trade within a particular future timeframe, hoping that the asset gets to trade at your predicted price.

 

[nomad]

When you trade future, you are basically trading for assumed price. You expect the assets to have a certain price and you put your assets for trading for that speculative price.

 

[Rubz]

I think trading futures in crypto trading means agreeing to buy or sell a crypto currency at a set price on a specific date in the future. It's like making a bet on the future price of a crypto currency.

 

[Nite]

Futures trading allows traders to use a small amount of money to control bigger investments. While this can lead to big profits, it also means there's a higher chance of losing more than what was originally put in.

 

[Passiveearner]

Future trading basically mean that you form a contract with the other party. This contracts includes trading commodities at a specific fixed rate regardless if the price of the commodity in the "future". This type of trading involves earning interest and this is why I would avoid it.

 

[Nite]

Future trading in crypto also comes with risks , including market volatility and regulatory uncertainty.

 

[Starmix]

You will only trade when the price of what to trade is reduced drastically that you'll get inspired to start.

 

[Passiveearner]

Future trading involves Riba, which is Haram. This is why I would never invest in future trading. I prefer spot trading and other kinds of trading options.