FTX Futures Trading Guide (Historical): What Happened and Key Risks

FTX EXCHANGE (INCLUDING FTX INTERNATIONAL AND FTX.US) IS NOT AN OPERATING TRADING VENUE. DO NOT DEPOSIT FUNDS OR FOLLOW OLD FTX TRADING INSTRUCTIONS.

2026 update: FTX and affiliated debtors filed for Chapter 11 bankruptcy in November 2022. The confirmed restructuring plan became effective on January 3, 2025, and distributions to eligible allowed claims have continued through official providers. Deadlines and requirements differ by claim class and distribution date, so creditors should use only the official FTX Customer Claims Portal and support pages and should be alert to impersonation scams. Sam Bankman-Fried was sentenced to 25 years in prison in March 2024 after convictions for fraud and conspiracy.

This article is retained as historical documentation of FTX’s former interface and product design. It is not a recommendation, and screenshots, fees, collateral weights, markets and links described below are obsolete. Our contemporaneous coverage includes:

What is futures trading?

Newcomers to cryptocurrency and digital asset trading must navigate a complex sector filled with acronyms and technical jargon, as well as dozens of ways to trade across multiple exchanges.

One option newcomers may have heard of, and which they may want to learn more about is futures trading.

At first glance, this can seem like a complicated way to trade. A simple interface does not remove the risks of leverage, liquidation, counterparty failure or an unregulated venue.

What are futures?

Futures are a type of derivative financial contract that creates an obligation for the parties to exchange the asset at a price and date that is predetermined.

The buyer is obliged to buy that asset, and the seller has to sell the asset, even if the price of the asset has gone up or down.

Think of future trading as a fixed price sale in the future. You agree with someone on a price that is higher or lower than the current price, and then in the future, the sale gets executed at the same agreed price.

The underlying assets in the contract can be anything from a set of cryptocurrencies to real estate or any other commodity. The contracts are designed to have a detail of the quantity of the underlying asset, and also help in the execution of the trade on a trading platform.

Why is it called futures trading?

Futures are generally named by the month they expire. For example, a January gold futures contract will expire in January and is based on gold as an underlying asset. Similarly, you can also find contracts for other commodities as well.

Traders usually use the term futures broadly for a whole asset class. However, there are multiple futures contracts available based on different assets. These future contracts include:

Commodities such as crude oil, corn, wheat, and so on
US bonds, or any other government-backed financial bond
Precious commodities like platinum and gold
Index futures such as the Dow Jones Industrial Index

Examples

A historical example once available on FTX was its Donald Trump 2024 prediction contract. This was not a conventional futures contract on a commodity; it was an event contract tied to an election outcome.

The contract allowed traders to speculate on whether Donald Trump would return to the White House following the 2024 presidential election. FTX collapsed nearly two years before that election, so the example must not be read as a market that remained available through settlement.

The contract expires on $1 if former president Donald Trump wins the 2024 election and it expires at $0 if he loses the election. The contract specifically also specifies other scenarios in which the contract expires early, for example, if he decides not to run in the future presidential election.

So if anyone invests $100 right now into the contract they will get 1063 positions of the contract which may become worth $1063 if Trump wins, and if he loses the amount would become zero.

The leverage used by the futures market is usually high. Leverage is a process in which a buyer can purchase the contract even if they enter it with a fraction of the contract’s value. The buyer only needs to come up with a fraction of the money, while the remainder is put up by the broker.

One of the most important things in futures trading is the exchange, where the whole trade gets executed and settled. As futures trading also involves physical exchange, it is important to have a good exchange with a stellar reputation backing up your trade. However, it should be noted most futures contracts are for people who speculate on the trade.

Difference between options and futures contracts

For people who are new to futures, it is important to understand there’s a difference between futures and options. An options contract does not put an obligation on the buyer or the seller. In the American way of doing business, it gives them the right to execute the trade before the expiration time, while in Europe the right is given after the expiration time.

In a futures contract, the buyer has to take possession of the underlying asset, and subsequently, the seller has to sell him that asset, they can settle for the cash equivalent. However, the trade has to take place.

The buyer also has the option of loading off their position any time before the trade expires to get rid of their obligation. This is one thing that is common in options as well as futures trading giving an advantage to the buyer to benefit from the leverage holder’s position before expiration.

FTX Exchange

Hundreds of platforms deal with crypto futures trading, however, traders need to be careful about which one they choose. They need to select a platform based on their preferences.

Before its collapse, FTX gained market share and was widely promoted as a sophisticated venue for futures, margin and leveraged trading. Those contemporary assessments proved dangerously incomplete.

FTX was founded by Sam Bankman-Fried and Gary Wang in 2019 and was closely connected with Alameda Research. According to the U.S. Department of Justice, Bankman-Fried repeatedly represented that customer deposits were safe and separate while customer money was instead misappropriated. He was convicted of fraud and conspiracy and sentenced in 2024.

The historical material below explains what users saw and how the products were described at the time. It should also serve as a counterparty-risk lesson: polished user experience, prominent investors and high trading volume are not substitutes for segregation of customer assets, reliable governance, regulation or independently verifiable reserves and liabilities.

What makes FTX futures different from regular futures?

The futures trading on FTX is a little different from other exchanges that offer futures contracts.

FTX futures are settled using stable coins. The settlements are made using stable coins as collateral and regular crypto cannot be used. This means that the volatility of crypto has no real effect on the users. This also gives the users a USD-based settlement exposure which means that you can use USD as the base currency for all your collateral and contracts, without the need for a bank account. Being in the crypto space also makes it easier for the position to be shifted around.

To avoid clawbacks, FTX futures has a unique program for providing backstop liquidity. The backstop liquidity is provided to accounts that are about to go bankrupt. This prevents the exchange from clawbacks.

Backstop liquidity is the assistance from the exchange that helps in creating a secondary source of funds for liquidity when the primary can’t cover it, in case of a bankruptcy event. It also stops the buyer from making additional payments to the seller in the case, which are called clawbacks.

The margin calls on the platform are measured and careful which avoids exposure to major price dislocations and huge losses.

How FTX collateral worked (historical)

Archive warning: The collateral assets, weights and account mechanics in this section describe the defunct exchange and cannot be used today.

In FTX futures the collateral is based upon stable coins and you do not have the option to post collateral in other cryptocurrencies. The current stable coins that are accepted include TUSD, USDC, and PAX.

For you to deposit or withdraw collateral you can go to your wallet on the FTX exchange and deposit USDC, PAX, or TUSD in your wallet. You can deposit them through a credit card or wallet transfer as well.

All margins posted on the wallet are in USD in your wallet by default, even if you fund it with stable coins the balance is shown in USD.

The collateral has a weight difference for each stable coin, in the case of USD fiat, the weight is kept at 1 meaning you can keep the collateral at the same amount. However for USDT, it is 0.975, for BTC it is 0.95 and for ETH it is 0.9 which means for the collateral to be high you have to have more collateral. This means that for $100 invested in USDT the collateral is at $97.5 while for the equivalent amount in BTC it is $95.

You can use the same collateral pool for all of your positions, by default all currencies that include USD, non-USD fiat, stable coins, and some cryptos can be counted as collateral. Cross margin is used for the account as every sub-account has its collateral wallet which is central to that account. Sub-accounts are considered as accounts and each sub-account has its own collateral. If you want isolated margins you would need to create a sub-account for each margin pool.

How do Futures expire?

The futures contract expires based on the set date of expiration. For example, a quarter future contract will expire every quarter between 2 am and 3 am UTC. Once the futures contract has expired the collateral amount gets credited into the seller’s account.

What are perpetual futures?

Perpetual futures are based on contracts that have no expiration date. The perpetual contracts work hour-wise, with each hour the contract has a funding payment.

This has a function of keeping the price of perpetual futures according to the index which is underlining it. The price can be kept stable without the position closing down or expiring.

How the FTX trading interface worked (historical)

When FTX was operational, a user could create an account, fund an exchange wallet and select a market through the interface shown below. These steps no longer work and must not be followed on sites claiming to recreate the old FTX exchange.

After opening an account, users were prompted to add funds to an exchange wallet by transferring cryptocurrency or using supported payment methods. This historical deposit flow is now defunct.

Once your funds have been deposited you can go to the ‘Markets’ tab on the front page:

FTX markets

In the ‘markets’ tab, you would get the following view, where you can see different futures contracts listed. The FTX exchange offers the largest collection of altcoins futures in the business.

FTX markets page

You can also see the timed futures, for example, December expiration futures, as well as perpetual futures in the list as well.

The exchange also offers futures on US-based stocks and commodities as well.

FTX US stocks and commodities futures

Once you have decided you want to trade a future, you select the future you want to trade and you get taken to the console. The console looks something like this:

At the middle of the console you can look at the trading window which has the graphs displayed.

The top right corner shows you the index details as well as the price of the futures contract, along with its expiration. The bottom right shows you details of the collateral you have available, and the leverage can also be set from there as well.

Coming down from the console you can come to the order book as well as the order execution tab and the market trades tab:

The console of the futures tab is designed with professional traders in mind; the console has each functionality that a trader would require.

The traders can monitor the price through the grid as well as make reference lines on the console as well. You can also add a variety of indicators to the console. The index price shows you the average of all the exchanges in the area, it also shows you different details as well.

Below the console window, you can take a look at the current positions you have in the market as well as the previous positions you have had.

The futures trades can be made through the console easily by keeping the collateral in your wallets. Once you have the collateral you can start trading futures through the exchange easily.

Conclusion

Hopefully, this guide has given you an insight into the world of futures trading and gives you an oversight of how traders can and do use this method to make money on digital asset markets.

FTX’s failure demonstrates that exchange and custody risk can overwhelm an otherwise successful trade. Anyone considering derivatives today should first confirm whether the venue and product are lawful in their jurisdiction, understand how customer collateral is held, and assume leverage can rapidly eliminate the entire margin balance.

As with all investments, people should take care and ensure they have an appropriate trading risk mitigation strategy in place to manage their portfolios. Always make sure you never invest more than you can afford to lose. The cryptocurrency markets are by their very nature extremely volatile, with prices moving much more sharply than traditional markets, both up and down.

Our archived FTX coverage

FTX exchange guide– Step by step guide on how to get started with FTX.
FTX exchange review– Our review of FTX exchange.
FTX funding rates– Learn how to earn passive income on FTX with funding rates.
Crypto futures trading with FTX– Guide to crypto futures trading on FTX.
Derivatives trading with FTX– Guide to derivatives trading on FTX.

Frequently asked questions

Can you still trade futures on FTX?

No. FTX.com and FTX.US are not operating trading venues. Do not send funds to a site or person claiming that an old FTX account must be reactivated for trading or withdrawals.

What should an FTX creditor do in 2026?

Use only the official FTX Customer Claims Portal and official support pages to check claim and distribution requirements. Eligibility, service providers and deadlines differ, and phishing campaigns often imitate bankruptcy communications. Verify the domain independently instead of following unsolicited links.

Are the FTX fees and collateral weights in this guide current?

No. They are historical details preserved to document how the former platform worked. They do not describe a live product and should not be used to compare current exchanges.

Is crypto futures trading safe?

It is high risk. Cryptocurrency prices can move sharply, leverage amplifies gains and losses, and a position may be liquidated before the market later reverses. Traders also face platform, custody, liquidity, operational and legal risks. A stop-loss does not guarantee execution at the requested price during a fast market.

Can U.S. residents trade crypto futures?

Access depends on the product, venue and current law. U.S. users should verify that a platform and contract are appropriately registered and available in their state rather than assuming an offshore site is permitted. Regulatory status can change, so check current CFTC and venue information before trading.

Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.