Derivatives
Financial contracts whose value is based on another asset — like Bitcoin or Ethereum.
Derivatives are financial contracts that get their value from another asset,
such as Bitcoin, Ethereum, or even traditional stocks.
They let traders speculate on price movements — going long (betting price will rise)
or short (betting it will fall) — without owning the actual crypto.
Common types
- Futures — agree today to buy or sell later at a fixed price.
- Options — the right (but not the obligation) to buy or sell at a set price.
- Perpetuals — like futures, but with no expiry date (very popular in crypto).
Why it matters
- Enables advanced trading strategies and hedging risk.
- Drives liquidity in crypto markets.
- Can also be very risky if you don’t manage leverage or funding rates.
💡 Lanzo Tip
If you’re new to trading, start with spot markets first —
derivatives move fast, and leverage can liquidate you in seconds ⚡