A Futures Commission Merchant (FCM) is an entity that facilitates the trading of futures contracts, which can include cryptocurrency futures. FCMs act as intermediaries between traders and exchanges, handling the execution of trades and ensuring proper clearance and settlement.These firms provide services such as accepting customer deposits, executing trades, and managing margin accounts. They help traders access leverage, allowing them to control larger positions with a smaller amount of capital. This can amplify both potential profits and losses.FCMs are required to register with regulatory bodies and adhere to specific standards, including capital requirements and risk management protocols. This ensures a level of protection for traders by promoting fair practices and financial stability.In the context of cryptocurrency, FCMs enable participation in the futures market, allowing investors to hedge against price fluctuations or speculate on future price movements. They play a crucial role in increasing market liquidity and providing access to institutional-grade trading services.