What are perpetual futures on Binance and how do they work?

6 answers

• Cook LangeDec 04, 2024 · 7 months ago
  Perpetual futures on Binance are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. Unlike traditional futures contracts, perpetual futures do not have an expiration date, which means they can be held indefinitely. These contracts are settled in a cryptocurrency, usually Bitcoin, and are designed to closely track the price of the underlying asset. They utilize a funding mechanism to ensure that the contract's price aligns with the spot price of the cryptocurrency. Traders can go long (buy) or short (sell) perpetual futures, depending on their market outlook. The leverage offered on perpetual futures allows traders to amplify their potential profits, but it also increases the risk of losses. It's important to thoroughly understand the mechanics and risks involved before trading perpetual futures on Binance.
  919

  460
• Benitez Walter DavidJul 19, 2020 · 5 years ago
  Perpetual futures on Binance are a popular trading instrument in the cryptocurrency market. They work similarly to traditional futures contracts but without an expiration date. This means that traders can hold their positions for as long as they want. Perpetual futures are settled in cryptocurrency and are designed to track the price of the underlying asset. Binance uses a funding mechanism to ensure that the contract's price stays in line with the spot price. Traders can use perpetual futures to speculate on both rising and falling markets, with the option to go long or short. However, it's important to note that trading perpetual futures involves significant risks, including the potential for liquidation if the market moves against your position.
  758

  253
• Francisco limaAug 31, 2024 · 10 months ago
  Perpetual futures on Binance are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies. They are similar to traditional futures contracts, but with some key differences. Unlike traditional futures, perpetual futures do not have an expiration date, which means traders can hold their positions indefinitely. Binance's perpetual futures are settled in cryptocurrency and are designed to closely track the price of the underlying asset. Traders can go long or short on perpetual futures, depending on their market outlook. However, it's important to note that trading perpetual futures carries significant risks, including the potential for substantial losses. As with any investment, it's crucial to do thorough research and understand the risks before engaging in perpetual futures trading.
  841

  211
• XDeveloperXMar 20, 2022 · 3 years ago
  Perpetual futures on Binance are a financial instrument that allows traders to speculate on the price movements of cryptocurrencies. They are similar to traditional futures contracts, but with some key differences. Perpetual futures do not have an expiration date, which means traders can hold their positions indefinitely. Binance's perpetual futures are settled in cryptocurrency and are designed to closely track the price of the underlying asset. Traders can go long or short on perpetual futures, depending on their market outlook. It's important to note that trading perpetual futures involves risks, including the potential for significant losses. Traders should carefully consider their risk tolerance and only trade with funds they can afford to lose.
  760

  152
• Buckley SvaneJul 29, 2020 · 5 years ago
  Perpetual futures on Binance are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies. They are similar to traditional futures contracts, but with some key differences. Perpetual futures do not have an expiration date, which means traders can hold their positions indefinitely. Binance's perpetual futures are settled in cryptocurrency and are designed to closely track the price of the underlying asset. Traders can go long or short on perpetual futures, depending on their market outlook. However, it's important to note that trading perpetual futures carries risks, including the potential for substantial losses. Traders should carefully consider their risk tolerance and use appropriate risk management strategies when trading perpetual futures.
  803

  134
• taiwanlannisterDec 09, 2024 · 6 months ago
  Perpetual futures on Binance are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies. They are similar to traditional futures contracts, but with some key differences. Perpetual futures do not have an expiration date, which means traders can hold their positions indefinitely. Binance's perpetual futures are settled in cryptocurrency and are designed to closely track the price of the underlying asset. Traders can go long or short on perpetual futures, depending on their market outlook. It's important to note that trading perpetual futures involves risks, including the potential for substantial losses. Traders should carefully consider their risk tolerance and only trade with funds they can afford to lose.
  767

  110