Futures Positions

Definition ∞ Futures Positions represent contractual agreements to buy or sell a cryptocurrency at a predetermined price on a specified future date. A long position indicates an agreement to buy, while a short position indicates an agreement to sell. These derivatives allow traders to speculate on future price movements without owning the underlying asset directly. Open interest, which is the total number of outstanding futures contracts, is a key metric for gauging market sentiment.
Context ∞ Crypto news often analyzes changes in futures positions to assess market sentiment and predict potential price volatility. A high concentration of long or short positions can signal a market ripe for a “short squeeze” or “long squeeze,” respectively. Regulatory discussions surrounding derivatives markets for digital assets also influence the structure and availability of these trading instruments.