Futures trading is a different way to engage the crypto markets. Unlike Spot trading, with Futures, you don’t actually buy into another coin. Rather, you take a view on the future price of the asset you’re interested in, and trade into contracts that derive their value from that asset.
It may sound complex, but it’s really easy. Instead of ‘buying’ and ‘selling’, with futures contracts we say you can ‘go long’ or ‘short’. If you expect the price to go up, you go long; if you expect it to go down, you go short. If you go long and the price goes up, you can make a profit. Likewise, if you go short and the price goes down, you can make a profit.
On AAX, you can trade futures with leverage. Let’s say, you have $10 USD worth of BTC and you want to trade Bitcoin futures against the USD. With 100x leverage, you can turn your $10 into $10,000 and get much more exposure to price movements. This means you can make bigger profits but it also comes with greater risks. It’s good to know, however, that on AAX, you can not lose more than you put in.