# Futures

> A contract to buy or sell an asset at a fixed price on a future date.

Canonical URL: https://fudfomo.co/glossary/futures
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

A futures contract is an agreement to trade an asset at a set price at a specific date in the future. They let traders hedge exposure or speculate on price moves without holding the underlying.

In crypto, dated futures exist alongside the more popular perpetuals. Futures are usually traded with leverage, which amplifies both gains and losses.

## Regulatory context

Crypto futures are heavily regulated in many countries, with different rules for retail and institutional access.

## Related terms

- [Perpetual Futures](https://fudfomo.co/glossary/perpetual-futures): A futures contract with no expiry date. Common in crypto, kept in line with the spot price by funding payments.
- [Leverage](https://fudfomo.co/glossary/leverage): Trading with borrowed funds, so a small move in the price has a much bigger effect on your position.
- [Basis](https://fudfomo.co/glossary/basis): The difference between the spot price of an asset and its futures price.
- [Options](https://fudfomo.co/glossary/options): A contract that gives the buyer the right, but not the obligation, to buy or sell at a set price by a set date.

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