Editing Crypto Futures Explained: Key Insights for Institutional Beginners (section)

== What Are Crypto Futures? ==
Crypto futures are financial contracts that obligate the buyer to purchase, and the seller to sell, a specific cryptocurrency at a predetermined price and date in the future. Unlike [[spot trading]], where assets are bought and sold immediately, futures trading allows traders to hedge against price volatility or speculate on future price movements.

=== Key Features of Crypto Futures ===
* **Leverage Trading**: Crypto futures leverage trading enables traders to amplify their positions by borrowing capital. For example, with 10x leverage, a $1,000 investment can control a $10,000 position.
* **Margin Explained**: Margin is the collateral required to open and maintain a leveraged position. It ensures that traders can cover potential losses.
* **Expiration Dates**: Crypto futures contracts have specific expiration dates, after which the contract is settled either in cash or by delivering the underlying asset.