Bitcoin Futures Explained!

Author: nicolas tang

Bitcoin Futures Explained

Since the blossoming of the cryptocurrency market in 2017, Bitcoin is increasingly becoming an essential means for fast transactions. However, a large part of the world’s population is still unaware of it and its associated financial instruments. If you’re looking for some guidance on Bitcoin Futures, this is the article for you.

What are Bitcoin Futures?

Futures are financial contracts that derive their value from an underlying financial asset. Those subject to this type of contract have agreed transact a chosen asset at a predetermined future date and price.

Bitcoin Futures are essentially an agreement between two parties to buy or sell a financial instrument with its value derived from Bitcoin. When the contract expires, those involved must buy and sell the instrument at the agreed price – regardless of whether the actual price of the instrument has risen or fallen.


Bitcoin futures have been around since just before 2018. At first, they were traded on “Crypto Exchanges” as unregulated assets. Soon after, two highly recognized traditional exchanges: “ the Chicago Board Options (CBOE) and the Chicago Mercantile Exchange (CME)”, also began offering futures based on Bitcoin. Since then, the Bitcoin futures market has become incredibly versatile and well known among traders.

Trading Bitcoin Futures

Bitcoin futures have undergone a lot of changes in the past two years. Now, the process of trading a Bitcoin futures contract is exceedingly simple thanks in part to exchanges like Phemex. Phemex is a cryptocurrency derivatives exchange that offers Bitcoin and USD settled perpetual contracts for BTC, ETH, XRP, LTC and EOS with up to 100x leverage.

Generally, Bitcoin futures are used to generate profits by speculating on the price movement of Bitcoins. It can also used to hedge against price fluctuations, specially in the volatile crypto market.

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