What are the key differences between ETHUSD perpetual futures contracts and traditional futures contracts?

3 answers

• Harsh BharoliyaMay 15, 2025 · a month ago
  ETHUSD perpetual futures contracts and traditional futures contracts have several key differences. Perpetual futures contracts do not have an expiration date, while traditional futures contracts have a fixed expiration date. This means that perpetual futures contracts can be held indefinitely, allowing traders to maintain their positions for as long as they want. On the other hand, traditional futures contracts require traders to close their positions before the expiration date. Additionally, perpetual futures contracts are settled in cryptocurrency, while traditional futures contracts are settled in fiat currency. This means that traders trading ETHUSD perpetual futures contracts will receive or pay out the contract's value in cryptocurrency, whereas traders trading traditional futures contracts will receive or pay out the contract's value in fiat currency. Overall, these differences make perpetual futures contracts more flexible and suitable for long-term trading strategies, while traditional futures contracts are better suited for short-term trading.
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• kronosaurusFeb 22, 2023 · 2 years ago
  The key differences between ETHUSD perpetual futures contracts and traditional futures contracts lie in their expiration dates and settlement currencies. ETHUSD perpetual futures contracts do not have an expiration date, which means traders can hold their positions indefinitely. On the other hand, traditional futures contracts have a fixed expiration date, requiring traders to close their positions before that date. In terms of settlement currency, ETHUSD perpetual futures contracts are settled in cryptocurrency, while traditional futures contracts are settled in fiat currency. This difference in settlement currency can affect the risk and volatility of the contracts. Additionally, perpetual futures contracts often have funding rates that are used to maintain the contract's price close to the underlying asset's price. These funding rates can lead to additional costs or profits for traders. Overall, the key differences between these two types of contracts offer traders different trading strategies and risk profiles.
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• sourasJan 26, 2021 · 4 years ago
  ETHUSD perpetual futures contracts and traditional futures contracts have distinct characteristics. ETHUSD perpetual futures contracts, like those offered by BYDFi, are perpetual contracts that do not have an expiration date. This means that traders can hold their positions for as long as they want without worrying about contract expiration. On the other hand, traditional futures contracts have a fixed expiration date, which requires traders to close their positions before the expiration date. Another key difference is the settlement currency. ETHUSD perpetual futures contracts are settled in cryptocurrency, while traditional futures contracts are settled in fiat currency. This difference in settlement currency can impact the trading experience and risk exposure for traders. Overall, the key differences between these two types of contracts provide traders with different options and strategies in the cryptocurrency market.
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