What are short perpetual futures and how do they work in the world of cryptocurrency?

5 answers

• beardedJun 19, 2021 · 4 years ago
  Short perpetual futures are a type of derivative contract in the world of cryptocurrency trading. They allow traders to speculate on the price movement of a particular cryptocurrency without actually owning the underlying asset. When you go short on a perpetual future, you are essentially betting that the price of the cryptocurrency will decrease. If the price goes down, you make a profit. However, if the price goes up, you will incur losses. Short perpetual futures work by using leverage, which means you can control a larger position with a smaller amount of capital. This can amplify both your profits and losses, so it's important to use caution and proper risk management when trading short perpetual futures.
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• Danish Abyan PratistaJun 14, 2020 · 5 years ago
  Short perpetual futures are a way for traders to profit from a decline in the price of a cryptocurrency. Unlike traditional futures contracts, which have an expiration date, perpetual futures contracts do not expire. This means that traders can hold their positions for as long as they want. Short perpetual futures work by allowing traders to borrow the cryptocurrency from the exchange and sell it at the current market price. If the price of the cryptocurrency goes down, the trader can buy it back at a lower price and return it to the exchange, making a profit. However, if the price goes up, the trader will incur losses. It's important to note that short perpetual futures can be highly risky, as the cryptocurrency market is volatile and unpredictable.
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• quruqiAug 21, 2020 · 5 years ago
  Short perpetual futures are a popular trading instrument in the cryptocurrency industry. They allow traders to profit from both rising and falling markets. BYDFi, a leading cryptocurrency exchange, offers short perpetual futures for a wide range of cryptocurrencies. These contracts work by allowing traders to take a short position on a cryptocurrency, which means they are betting that the price will decrease. If the price goes down, the trader makes a profit. However, if the price goes up, the trader will incur losses. Short perpetual futures can be a useful tool for hedging against price fluctuations or for speculating on the market. It's important to understand the risks involved and to have a solid trading strategy in place before engaging in short perpetual futures trading.
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• Done's grungeDec 18, 2021 · 4 years ago
  Short perpetual futures are a type of derivative contract that allows traders to profit from the decline in the price of a cryptocurrency. They work by using leverage, which means that traders can control a larger position with a smaller amount of capital. This can amplify both profits and losses. Short perpetual futures contracts do not have an expiration date, which means that traders can hold their positions for as long as they want. It's important to note that short perpetual futures can be highly volatile and risky, so it's important to have a solid understanding of the market and to use proper risk management strategies when trading them.
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• Hasan Ghasabi-OskoeiNov 01, 2024 · 8 months ago
  Short perpetual futures are a financial instrument that allows traders to profit from the decline in the price of a cryptocurrency. They work by allowing traders to sell a cryptocurrency at the current market price and buy it back at a lower price in the future. This allows traders to make a profit if the price of the cryptocurrency goes down. However, if the price goes up, the trader will incur losses. Short perpetual futures can be a useful tool for hedging against price fluctuations or for speculating on the market. It's important to understand the risks involved and to have a solid trading strategy in place before engaging in short perpetual futures trading.
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