How to Trade Bitcoin Futures Contracts

Binance Academy · 2023-06-01T09:28:49.000Z

TL;DR Bitcoin futures contracts are a derivative product similar to traditional futures contracts. Two parties agree to buy or sell fixed amounts of bitcoin at a specific price on a certain date. Traders use them speculatively, but you can also use them as a hedging strategy. Hedging is especially popular among miners who need to cover their operating costs. Futures are a great way to diversify your portfolio, trade with leverage and bring stability to your future income. If you want to explore more advanced futures strategies, research arbitrage. Cash-and-carry arbitrage and inter-exchange arbitrage (between brokers) offer some low-risk trading opportunities when executed correctly.