Derivative
DeFi
Instrument whose value derives from an underlying asset.
Derivatives are contracts linked to the price of something else. Common forms are futures, options, and perpetuals. They help hedge risk or gain exposure with less capital, but they add complexity. Practice in small size and learn how margin and liquidations work.
Frequently asked questions
What is a perpetual?
A future with no expiry that uses a funding rate to keep its price near the spot market.How do options differ from futures?
Options give the right but not the obligation to trade later. Futures are obligations unless you close the position.What risks should I consider?
Leverage amplifies gains and losses. Understand liquidation rules, funding rates, and margin before trading.