Crypto futures are one of the fastest-growing segments in the global derivatives market. They let you trade the future price of cryptocurrencies like Bitcoin, Ether, Solana, and XRP without needing to own the underlying crypto.
In this beginner-friendly guide, you’ll learn:
- What crypto futures are and how they work
- Why traders and institutions use them
- The most popular crypto futures contracts
- Differences between standard and micro futures
- Benefits and risks of trading crypto futures
- How to get started with MetroTrade
What Are Crypto Futures?
Crypto futures are standardized contracts that let you buy or sell a cryptocurrency at a predetermined price on a future date. You’re not trading the actual coin. Instead, you’re speculating on the price direction of the asset, just like futures for oil, gold, or the S&P 500.
These contracts are traded on regulated exchanges like the CME Group (Chicago Mercantile Exchange), and all futures available on MetroTrade are cash-settled, so you never have to take delivery of crypto.
Key takeaway: Crypto futures offer a leveraged and regulated way to trade crypto price movements without owning the asset directly.
How Do Crypto Futures Work?
Let’s say Bitcoin is trading at $100,000. You believe the price will rise, so you buy a futures contract.
- If Bitcoin rises to $110,000 before expiration, you profit.
- If it drops to $90,000, you lose money.
Each contract has a set size, tick value, and expiration date. You’ll only need to post a margin — a percentage of the total value — to open a position. This gives you built-in leverage, but also increases your risk.
You can:
- Go long if you think the price will rise
- Go short if you expect it to fall
Why Trade Crypto Futures?
1. Speculate on Price Moves
Trade short- or long-term swings in crypto prices without owning coins or setting up wallets.
2. Hedge Crypto Holdings
Traders and businesses can use futures to protect against sudden price drops in assets they already own.
3. Use Leverage
Futures give you exposure to a large notional amount with a relatively small upfront investment.
4. Trade with Regulation and Transparency
CME-listed contracts are CFTC-regulated and cash-settled, helping reduce the risk of hacks, counterparty failure, or custody complications.
5. 24-Hour Access
Crypto futures trade nearly around the clock, Sunday through Friday, just like the spot crypto market.
Popular U.S. Crypto Futures Contracts
Here’s a table summarizing key crypto futures contracts available through CME Group and MetroTrade:
Contract | Symbol | Contract Size | Tick Size | Tick Value |
Bitcoin Futures | /BTC | 5 BTC | $5 | $25.00 |
Micro Bitcoin Futures | /MBT | 0.10 BTC | $5 | $0.50 |
Ether Futures | /ETH | 50 ETH | $0.50 | $25.00 |
Micro Ether Futures | /MET | 0.10 ETH | $0.50 | $0.05 |
Note: These are cash-settled and trade nearly 24 hours a day, Sunday evening to Friday afternoon (Central Time).
Speculating vs. Hedging in Crypto Futures
Speculating
Traders use futures to capitalize on volatility. For example:
- Long /BTC before a major Bitcoin ETF ruling
- Short /ETH ahead of a protocol upgrade
- Trade macro trends, like interest rate sensitivity or regulatory news
The built-in leverage allows for significant upside (and downside) on small price movements.
Hedging
Crypto businesses and long-term holders can use futures to reduce portfolio risk:
- Miners or treasuries can sell futures to lock in prices
- Traders long spot Bitcoin may short /BTC to neutralize near-term volatility
- Institutions can manage crypto exposure with regulated futures instead of risky offshore instruments
Standard vs. Micro Crypto Futures
Feature | Standard Futures (/BTC, /ETH) | Micro Futures (/MBT, /MET) |
Size | Larger (5 BTC, 50 ETH, etc.) | Smaller (0.1 BTC, 0.1 ETH) |
Capital Required | High | Low |
Risk Level | Higher dollar swings | More precise control |
Best For | Institutional or large traders | Retail or cautious traders |
Micro crypto futures let you get started with manageable exposure while still using a regulated, professional-grade platform.
Crypto Futures Contract Overview
Bitcoin Futures
Standard Bitcoin Futures (/BTC)
- Size: 5 BTC
- Tick size: $5
- Tick value: $25
- Example contract value: $500,000 (5 × $100,000)
Micro Bitcoin Futures (/MBT)
- Size: 0.10 BTC
- Tick value: $0.50
- Example contract value: $10,000
Ether Futures
Standard Ether Futures (/ETH)
- Size: 50 ETH
- Tick size: $0.50
- Tick value: $25
- Example contract value: $125,000 (50 × $2,500)
Micro Ether Futures (/MET)
- Size: 0.10 ETH
- Tick value: $0.05
- Example contract value: $250
Key Benefits of Crypto Futures
Leverage with Capital Efficiency: Trade large notional values with less capital. Ideal for amplifying gains, but also riskier.
24-Hour Market Access: React to crypto price swings and news nearly 24/5.
Portfolio Hedging: Protect long-term holdings from downside without selling your crypto.
Price Discovery and Transparency: Futures prices on CME help establish fair value and reduce reliance on offshore exchanges.
Tight Spreads and Liquidity: Standardized contracts attract institutional interest and active trading volume.
Risks of Crypto Futures
Volatility: Crypto assets can move 10%+ in a single day. Futures exposure magnifies this.
Leverage Risk: While leverage can boost profits, it also accelerates losses. Always use stop-losses and position sizing.
Margin Calls: If the market moves against your trade, you may be required to deposit additional funds.
Expiration Risk: Futures expire monthly. If you want long-term exposure, you’ll need to roll into the next contract.
Complexity: Beginners should start small. Understanding margin, tick values, and position management is essential.
How To Start Trading Crypto Futures
- Open an account with MetroTrade
Futures-enabled accounts offer access to crypto markets with no minimum deposit. - Choose your contract
Pick from Bitcoin or Ether contracts – start with micro contracts if you’re new. - Understand contract specs
Know the tick size, margin requirement, and expiration dates. - Use demo mode
Practice trading risk-free with real-time pricing. - Monitor risk
Use stop orders, limit order discipline, and avoid over-leveraging your account.
Final Thoughts
Crypto futures offer a powerful, regulated, and flexible way to trade digital assets. Whether you’re speculating on short-term volatility or hedging long-term exposure, these contracts give you the tools to participate in crypto markets with precision.
Start small, manage your risk, and always know your contract before you trade.
Ready to trade crypto futures?
Explore Contracts on MetroTrade
Or test your strategy risk-free with our Demo Trading Account
Frequently Asked Questions
What are crypto futures?
Crypto futures are contracts that let you trade the future price of cryptocurrencies like Bitcoin or Ether without owning the coins. You’re speculating on price movement using a regulated platform and built-in leverage.
What’s the difference between standard and micro crypto futures?
Standard contracts (like /BTC or /ETH) have larger sizes and are better suited for institutions. Micro contracts (like /MBT or /MET) are 1/50th or 1/500th the size, offering smaller exposure, lower margin requirements, and greater control for retail traders.
Can I use crypto futures to hedge my portfolio?
Yes. Crypto holders, miners, and funds use futures to protect against downside risk. For example, you could short /BTC to offset a long spot Bitcoin position during high volatility or regulatory uncertainty.
How risky are crypto futures?
Crypto futures carry significant risk due to high volatility and leverage. Prices can swing 10% or more in a day, and margin calls may require you to add funds or exit positions quickly. Always use stop-losses and strict position sizing.
Are crypto futures regulated?
Yes. CME-listed crypto futures are regulated by the CFTC in the U.S. and are cash-settled, removing custody risk. This makes them more secure than offshore or unregulated crypto derivatives.
How do I start trading crypto futures?
Open a futures-enabled account (e.g., with MetroTrade), select a product like /MBT or /MET, review contract specs, practice on a demo account, and start small with clear risk management rules in place.