Futures Contract
A futures contract is a derivative which binds two parties to a transaction in the future.
A futures contract is a derivative which binds two parties to a transaction in the future. For a given underlying asset the futures contract is defined by its maturity and strike price. Futures contracts are generally settled daily for the duration of their maturity.
Futures are generally settled by assessing the value of the contract and the party realizing a loss will pay the party realizing a gain that amount in their chosen currency. However, it is also possible for the contract to be settled with the actual transaction specified in the agreement. Futures contracts are generally standardized to certain dates and prices.
This concentrates the contract orders into distinct groups, increasing the liquidity of the contracts. Traders commonly use futures to leverage their trading.
Futures Contract is a trading and market concept that describes how assets are bought, sold, or valued in financial markets. Onramp's glossary helps investors understand Futures Contract and other market dynamics relevant to Bitcoin trading and investment strategies.
Frequently Asked Questions
What is Futures Contract?
Futures Contract is a financial markets concept that relates to how trades are executed, priced, or managed. Understanding Futures Contract is important for anyone actively participating in Bitcoin or traditional financial markets.
How does Futures Contract apply to Bitcoin markets?
Futures Contract applies to Bitcoin markets just as it does to traditional assets. Bitcoin's 24/7 global trading across multiple exchanges makes understanding concepts like Futures Contract especially relevant for crypto investors.
Does Onramp offer Bitcoin trading services?
Onramp provides Bitcoin financial services designed for individual and institutional investors. Onramp's platform helps clients navigate market concepts like Futures Contract with transparent pricing and dedicated support.
