Futures Contract
A standardized financial derivative agreement to trade an asset at a predetermined price, enabling leveraged long and short exposure.
In-Depth Explanation
In crypto, perpetual futures ('perps') are the dominant instrument because they have no expiry date and use funding rates to track spot prices.
Practical Market Example
Real-World Application
Opening a 5x leveraged long futures contract on BTC with $1,000 margin collateral.