For futures markets, the price of a contract indicates the market’s estimated price for an asset by the contract’s settlement date. With futures trading, settlement acts as the expiration date for the contract meaning that users’ positions are closed at the final price on the settlement date.

💡 How can I use it?

Futures Price is useful for price discovery among top crypto-assets. Given that derivatives as a whole trades more volume for large capitalization assets like Bitcoin, these are more liquid and are frequently used by institutional investors for price discovery.

As well, futures contracts’ price is helpful when compared to the underlying asset’s price. More on this can be found on the contango/backwardation basis indicator.

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