Futures Traders

Definition ∞ Futures traders are individuals or entities who participate in the futures market, engaging in contracts that obligate them to buy or sell an underlying asset at a predetermined price on a future date. These participants speculate on price movements or hedge existing positions. Their actions contribute to price discovery and provide liquidity to the derivatives market. They operate with a forward-looking perspective on asset valuation.
Context ∞ Futures traders are increasingly active participants in the cryptocurrency markets, driving volume and volatility in digital asset derivatives. News often covers their positioning, the impact of their trades on spot prices, and the regulatory scrutiny applied to these markets. Understanding their behavior is important for interpreting market trends and the dynamics of asset price discovery.