What was once a niche product limited to global exchanges is now becoming the preferred instrument for Indian traders, particularly those transitioning from equity F&O. The introduction of INR-margined perpetual contracts and the challenges around spot trading have only accelerated this momentum
The Equity Derivatives Connection
For seasoned equity traders, crypto futures offer a familiar playground. Much like traditional futures and options in equity markets, these instruments enable users to go long or short, hedge positions, and amplify exposure using leverage.
This alignment has led to surging interest from equity derivatives traders, who find the transition to crypto derivatives seamless. “Derivatives offer strategic advantages, and many equity traders already understand the risk-reward equation. Crypto futures now account for over 80% of trading volume on Indian exchanges,” says Sumit Gupta, Co-founder of CoinDCX. “Crypto futures offer similar mechanics, with round-the-clock markets and high volatility—which, for experienced traders, presents opportunity.”
The Power of Perpetuals and INR Margining
A key innovation driving the growth of crypto futures in India is the introduction of perpetual contracts. Unlike traditional futures, perpetuals do not have an expiry date, allowing traders to hold positions indefinitely while managing them via funding rates and real-time margining.
Even more transformative is the arrival of INR-margined futures, a first in the Indian market. These contracts allow users to trade major crypto pairs like BTC-USDT or ETH-USDT using INR as margin, eliminating the need to purchase stablecoins like USDT or USDC.
“We wanted to localise access,” Gupta explains. “INR margining means users can deposit INR directly and trade crypto futures in global markets. It’s about making the product simpler, safer, and more accessible.”
This innovation also circumvents key pain points—such as onboarding complexity, banking restrictions, and regulatory friction around stablecoin transfers—further opening up crypto derivatives to a wider Indian audience.
Leverage and Risk Management
Leverage is a central feature of futures trading, offering traders the ability to scale exposure while optimising capital efficiency. On Indian platforms, leverage options now range from 1x for conservative strategies to 100x for aggressive scalping.
This flexibility allows for a diverse set of trading approaches—from short-term momentum plays to long-horizon directional bets. However, it also introduces risks that must be managed diligently.
“Futures are a double-edged sword,” Gupta notes. “We always emphasize the importance of position sizing, using stop losses, and maintaining diversified strategies. Risk management is the key to long-term success.”
Institutional Participation Gaining Ground
Globally, institutional interest in crypto continues to rise. According to Bitwise, public companies added over 95,000 BTC to their balance sheets in Q1 2025—the highest quarterly accumulation ever recorded. With 79 corporations now holding Bitcoin, and Strategy (formerly MicroStrategy) alone holding over 531,000 BTC, the signal is clear: Bitcoin is no longer a speculative asset, but a strategic reserve.
This wave of institutional adoption adds credibility, liquidity, and long-term stability to the crypto market. And because crypto is inherently global, rising institutional demand impacts markets everywhere—including India. It also lends further confidence to retail and professional traders venturing into crypto derivatives.
