Crypto futures trading: perpetual futures explained simply

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.Crypto futures and perpetual futures explained: how futures trading works, what the funding rate really costs and which exchanges are licensed for it in the EU.Add as a preferred source on GoogleFollow on Google NewsCrypto futures are forward contracts on bitcoin and other cryptocurrencies. They let you trade the price without owning the coins, bet on rising or falling prices and use leverage. The most common form is perpetual futures: futures without an expiry date that stay close to the spot price through a regular balancing payment, the funding rate. In Germany, futures trading is permitted for retail clients. Legally, futures are financial instruments under the Markets in Financial Instruments Directive MiFID II, not crypto-assets under MiCA. You trade them on crypto exchanges that are additionally licensed as investment firms in the EU, or through your broker on futures exchanges such as CME and Eurex. How this works, what it costs and which providers are licensed is explai...