Definition ∞ Futures trading involves agreements to buy or sell an asset at a predetermined price on a specific future date. These contracts are standardized and traded on exchanges, allowing participants to speculate on price movements or hedge existing positions. In the cryptocurrency space, futures contracts enable traders to gain exposure to digital assets without directly holding them. This form of trading carries significant leverage potential and associated risks.
Context ∞ The landscape of cryptocurrency futures trading is experiencing rapid expansion, with new platforms and contract offerings emerging regularly. Discussions frequently revolve around the increasing institutional interest in these products, the regulatory scrutiny they face, and the impact of leverage on market volatility. The development of more sophisticated futures products, such as options and perpetual swaps, continues to shape trading strategies and risk management approaches within the digital asset markets.