Futures
trading
derivatives
Futures are derivatives for long or short exposure to an asset; crypto markets commonly use perpetual futures with no expiry.
1
concept
Crypto futures allow traders to gain long or short exposure without holding the underlying asset. Standard futures expire on a set date; perpetual futures have no expiry and use funding payments to track an index price.
2
mechanics
Key elements include margin, leverage, liquidation thresholds, mark price, and maintenance requirements. Exchanges use insurance funds and auto-deleveraging mechanisms to handle bankrupt positions.
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Related terms
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