The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

There are many ways to trade Bitcoin, and the products derived from it are also diverse. The common ways are spot trading and contract trading. Most people will prefer spot trading, a simple and fast method, but some people will also choose contract trading because simple spot trading can no longer satisfy their pursuit of Bitcoin investment. But even if you have been in the currency circle for a long time, you are often confused about some concepts. Investors still cannot understand whether a Bitcoin contract is an options contract or a futures contract? In fact, the three of them are just financial derivatives derived from Bitcoin. Let the editor of the currency circle popularize this knowledge for everyone.

 Is a Bitcoin contract an options contract or a futures contract?

Bitcoin contracts are neither options nor futures. Although Bitcoin contracts and futures are the same principle, they are not the same concept. They are all products derived from Bitcoin.

A Bitcoin contract is a financial derivative that is traded on an exchange and its value is related to the price of the underlying asset (Bitcoin). Bitcoin contracts generally allow traders to earn or pay profits and losses based on changes in the price of Bitcoin through the contract. There are many types of Bitcoin contracts, such as Contracts for Difference (CFD), options contracts, etc. Bitcoin contracts can usually be used for leveraged trading, which means using a smaller principal to conduct larger transactions, but this is also accompanied by higher risks.

An option contract is a contract that gives both parties the right to buy or sell a certain related instrument or asset at a certain price - the strike price or exercise price - on a certain date in the future, that is, before or on the expiration date. , rather than a contract of obligations.
The price paid by the buyer of an option contract to the seller for owning this right is called the option premium.

Futures contracts refer to standardized contracts formulated by futures exchanges that stipulate the delivery of a certain quantity and quality of commodities at a specific time and place in the future.
It is the object of futures trading. Futures trading participants transfer price risks and obtain risk returns by buying and selling futures contracts on futures exchanges.
Futures contracts are developed on the basis of spot contracts and spot forward contracts, but their most essential difference lies in the standardization of futures contract terms.

 What’s going on with Bitcoin contracts?

A Bitcoin contract is a standardized, tradable Bitcoin financial derivative that allows traders to invest and trade in Bitcoin prices without directly holding actual Bitcoins.

Bitcoin contracts are derivatives contracts based on the price of Bitcoin, which allow traders to buy or sell based on the rise or fall of the price of BTC. The value of the contract is related to the price of Bitcoin, and traders can make profits by predicting the rise and fall of Bitcoin prices.

Bitcoin contracts are divided into two main types: delivery contracts and perpetual contracts.

1. Delivery contract: A delivery contract is a contract for delivery on a predetermined date. On the delivery date, the contract will be settled and delivered at the agreed price. Delivery contracts are often used for short-term speculation and hedging transactions.

2. Perpetual contract: A perpetual contract is a contract with no expiration date and can be traded continuously. It keeps the contract price close to the actual BTC price by introducing a funding rate. Perpetual contracts are typically used for long-term holding and leveraged trading.

All of the above is the answer to the question of whether a Bitcoin contract is an options contract or a futures contract. Through Bitcoin contract trading, traders can use leverage to magnify investment returns or risks. Leverage allows traders to make larger trades with less capital, but it also increases the potential risk of loss. It should be noted that Bitcoin contract trading is high-risk, with large price fluctuations, and requires investors to have certain market awareness and risk control capabilities. Before trading Bitcoin contracts, it is recommended to learn more about the rules, risks and exchange regulations of the relevant contracts, and carefully evaluate your investment capabilities and risk tolerance.