The exponential expansion of the crypto market has led to a significant surge in the demand for platforms allowing crypto futures. They offer the lucrative opportunity to engage in speculative trading of crypto assets. The task of selecting the most suitable platform amidst a plethora of options can turn out to be challenging. In this article, we shall examine common platforms for futures trading. It will help you choose the best crypto futures trading platform for your training purposes.
How Do Crypto Futures Work?
Here’s an overview of how futures work:
- Futures consist of two parties agreeing. The buyer commits to buying a set amount of assets at a pre-agreed price on an exact day in the future. The seller commits to delivering the asset at the agreed-upon value and day.
- Crypto traders utilize futures agreements to “bet” on the further movement of crypto rates. They take a long position (buy) when they anticipate a rise in price and a short position (sell) when they await the price drop.
- Futures trading involves leverage, enabling traders to manage larger positions with less capital. Opening a position requires traders to deposit a margin, which is a percentage of the contract’s total value. The leverage size determines the impact on potential profits or losses.
- Futures agreements take prices from the prevailing market rates. The contract’s value is defined by multiplying the price by the size of the agreement. For instance, if the current value of one BTC is $30,000 and the contract size is 10 Bitcoins, the contract’s value would amount to $300,000.
- Gains or losses are defined by the disparity between the entry and exit prices of a position.
Popular Exchanges for Futures Crypto Trading
Binance offers an extensive futures platform known as Binance Futures. This sophisticated platform has a user-friendly interface, convenient tools, and a diverse array of contracts encompassing cryptos such as Bitcoin, Ethereum, and more. Binance Futures supports both perpetual contracts with up to X10 leverage and conventional futures agreements.
BitMEX – a renowned platform dedicated to crypto futures. It provides perpetual agreements and conventional futures agreements for various assets such as BTC, ETH, and others. BitMEX is recognized for its provision of high-leverage options (up to X100), allowing traders to increase their potential returns. BitMEX is inaccessible to customers from specific jurisdictions, including the United States.
The WhiteBIT exchange also offers a futures platform. Traders can exploit the future price changes of different digital assets, including the most popular BTC, ETH, MATIC, DOGE, and others. The platform offers perpetual contracts for continuous trading without expiration. WhiteBIT offers competitive leverage options (up to X20), client support, and a user-friendly interface.
By carefully exploring the aforementioned options and thoroughly assessing individual requirements, one can identify the most suitable exchange for trading futures. Don’t forget to check the security measures of the platform you use and pass all the necessary verification processes for better protection.
