📘What are futures?

A brief explanation of how Futures work on FuturesAI.

How do futures on FuturesAI work?

Imagine futures trading as if you're betting on the future price of something exciting, like a popular video game or, to make it simple, lemons for your lemonade stand. It's essentially agreeing today on the price of something you'll exchange in the future. Picture this: you predict the price of lemons will rise due to a scorching forecast, signalling a booming demand for lemonade. You lock in a deal to buy lemons at today's price, betting on a "bull market." If the price soars, you snag a bargain, boosting your lemonade profits. But if it falls, you're stuck paying above the odds.

With FuturesAI, it's similar but with the twist of cryptocurrencies. You predict whether the price of cryptos like $ETH, $PORK or $GROK will climb or tumble shortly. Nail your prediction, and you profit. Miss the mark, and there's a loss. It's a strategic game, forecasting the crypto market's next move.

How Does FuturesAI Leverage Work?

Consider your thriving lemonade stand. You sense a golden opportunity with a sunny event ahead and wish to expand, turning $10 into $100 of lemons. Leverage in FuturesAI acts as your financial boost, using a slice of your funds (like ETH or SOL) as collateral to secure a much larger purchasing power for lemons.

In this scenario, you're essentially saying, "Here's $10 as proof of my commitment, now let me buy $100 worth of lemons on the promise I'll pay back." It's a deal backed by your collateral, offering the chance to significantly amplify your gains. If lemon prices soar, leveraging could mean turning a modest profit into a windfall because you operated with tenfold the lemons.

Yet, risks loom large. Should the event wash out, you face not just the loss of your $10 but also the obligation to settle up for those unsold, leveraged lemons. Your collateral ensures that FuturesAI isn't left covering for your overreach.

Leverage, thus, is a double-edged sword: it can propel your lemonade stand to legendary status or result in a substantial financial setback. It's crucial to measure the risks and manage the leverage with as much care as you'd manage your stand.

How Do We Offer Derivatives on Meme Markets?

Our expertise isn't just in crunching numbers; our extensive trading experience over the last four years has equipped us with a deep understanding of market dynamics. We've transformed the futures landscape by introducing meme token futures and other burgeoning tokens, a stark contrast to traditional exchanges focused on long-standing cryptocurrencies.

Our platform caters to the fast-paced world of meme tokens by offering short, 24-48 hour futures. This strategy not only matches the quicksilver nature of meme markets but also minimises our traders' risk exposure. The cornerstone of our operation is our bespoke order engine, designed to seamlessly balance long and short positions, thus ensuring a liquid and sustainable market.

By concentrating on brief trading windows, we provide a vibrant and fluid trading experience, empowering traders to leverage rapid market shifts without the burden of prolonged engagements found in conventional futures trading.

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