How Bitcoin Futures Trading works?

Author: nicolas tang


Bitcoin has gained massive attention of the investors and big firms since 2017. Nowadays, trading Bitcoin and Derivatives have become a way of life for serious traders all around the world. Everyone wants to get into Futures/Derivatives trading.
If you also want to know more about “how futures trading works” then make sure you go through this article. Let’s take a look at what exactly are bitcoin futures?

What are futures?

Futures are used to make profits when people speculate on the price movement of an instrument. They are also use to hedge against the risk of price fluctuations.
Futures are simply an agreement between two parties to buy or sell a commodity of financial instrument on a precise future date and at a specified price. So, when the contract expires, both parties to the contract must buy and sell at the agreed price – even if the price of the underlying asset has fallen or risen over time.

How Does Futures Trading Work?

A Bitcoin contract also called “Bitcoin Futures Contract” is an agreement between two parties to buy or sell a financial instrument which in this is ‘Bitcoin’. When the contract expires both parties to the contract must buy and sell at the agreed price – even if the price of Bitcoin has fallen or risen over time.

Futures are derivative financial contracts that obligate the parties to transact an asset at a predetermined future date and price. Parties can take two positions in a Futures contract; long or short. If you take a long position, you agree to buy the Bitcoins in the future at ta specific price when the contract expires. On the other hand, if you take a short position, you agree to sell the Bitcoins at a set price upon the contract expiration. They are also used to hedge against the risk of price fluctuations, which is especially useful when the underlying asset’s price is very volatile.

Futures contracts are traded on regulated exchanges and a regulated by the Commodity futures trading commission (CFTC). Futures contracts are negotiated and traded on a futures exchange.

Phemex is a cryptocurrency derivatives exchange offering Bitcoin and USD settled perpetual contracts of BTC, ETH, XRP, LTC, EOS, with up to 100X leverage. It is an innovational, easy to use, professional, trustworthy and one of the safest exchanges in the market. Check out below how to register on Phemex.


Registration on Phemex is very simple. Simply go to Phemex website and from the “Right Top Corner” click register. A new webpage will open. First provide your email. After that choose a strong password for your Phemex account.
Secondly, open your email that you provided during registration; they will send you a 6-digit verification code. Enter that code on the registration webpage and you’re good to go.

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