Crypto Derivatives

Definition ∞ Crypto derivatives are financial instruments whose value is derived from an underlying cryptocurrency or a basket of cryptocurrencies. These instruments, such as futures, options, and perpetual swaps, allow participants to speculate on price movements or hedge against volatility without directly holding the underlying digital asset. They offer sophisticated trading and risk management strategies within the digital asset market.
Context ∞ News concerning crypto derivatives often highlights market trends, the introduction of new trading products, or regulatory scrutiny of these complex financial instruments. Their growth and evolution are closely linked to the increasing institutional adoption and maturation of the cryptocurrency market.