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Futures Contract

A futures contract in crypto is a type of derivative financial instrument that allows investors to speculate on the future price of a particular cryptocurrency. In a futures contract (e.g. Bitcoin ETFs) two parties agree to buy or sell a certain amount of cryptocurrency at a specific price and date in the future.

Futures contracts are traded on futures exchanges, and the price is determined by the market demand and supply for the particular cryptocurrency. These contracts are usually standardized in terms of their expiration date, quantity, and quality of the underlying asset.