Futures are derivative contracts that allow you to buy or sell a security or commodity at a predetermined price at a later date. At the expiration date of the futures contract, the buyer is obligated to purchase the underlying asset, while the seller is obligated to sell it. The contract’s value is determined by assets such as commodities, currencies, indexes, or stocks. Futures contracts are traded on exchanges and are used to generate income, hedge, speculate, and for other purposes. Bitcoin (BTC) futures, which represent future agreements to trade BTC, are one type of cryptocurrency application.