What is a Futures Contract?

Futures contract is a derivative product and an agreement to buy or sell an asset at a fixed price at a specified time in the future.

Bitcoin futures work on the same principles as futures on traditional financial assets. They are usually instrumented by traders as a mean to hedge other investments or to lock in profits when trading in volatile markets.

By anticipating whether the price of Bitcoin will go up or down, traders also either go long or short on futures contracts.

At C-Trade, we do not require traders to post 100% of collateral as margin to trade futures contracts, while traders can trade with leverage of up to 100x on some contracts, e.g., Bitcoin Perpetual Contract.