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Understanding Futures

Binance

Cryptocoins Exchanges / Binance 182 Views

Hi fellows!

I traded futures on binance for a while and recently realized that it's not clear to me how they work.

So, futures are derivatives. That means they derive the price from underlying asset. But does that mean that:

  • a future price is dependent on the asset price and an asset price is not depended on the future price
  • future traders can't move its price because it is attached to the asset

Seems logical, but probably wrong. Can you help me to understand the reality?

submitted by /u/geomslayer
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