Futures Contract

A Futures Contract is one of the financial derivatives, which is a contract that promises to buy and sell certain goods or financial instruments of a certain quality and quantity at a fixed price with a certain point in the future as the date of acceptance or delivery. In other words, a futures contract differs from a spot contract that accepts and delivers the goods at a fixed price at the same time as the contract, on the notion that the contract is made at present, but the goods are acquired and delivered in the future. There are two main methods of settlement of futures contracts: 1) physical delivery through spot trading, and 2) cash settlement based on the P&L on the final day of the contract. Future contracts on MCS take the cash settlement method by settling the difference between the spot price and the future price of the cryptocurrency on the settlement date.