I will explain that simply to those who still confused about bitcoim future contracts
Futures contracts are contracts under which the purchaser commits to purchase a certain asset in the future. In return, the seller also undertakes to sell the same asset on predetermined prices. These contracts specify the type and quantity of assets contracted in some detail. Futures in the commodities market have emerged since 1851 and their main objective is to negotiate between investors on terms of sale and purchase of a commodity in the future. Under this term contract, a certain commodity is to be delivered from one person (seller) to another (buyer) A specific date in the future, regardless of the price of this commodity in future history.
These contracts do not require the physical delivery of the assets contracted by the parties but the majority of these contracts are settled in cash and these contracts are used either to protect against the rapid and strong fluctuations of the assets under contract or speculation and profit from their volatility in the stock exchange.
What is the futures exchange?
- Futures Market or Futures Exchange is a central market in which futures contracts are traded by trading in terms of the main asset movement (stocks, commodities, currencies, etc.).
