What are the key features and principles of perpetual futures in the realm of digital assets?

3 answers

• FriddeMay 23, 2023 · 2 years ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of digital assets without actually owning the underlying asset. They have several key features that differentiate them from traditional futures contracts. Firstly, perpetual futures do not have an expiration date, meaning that traders can hold their positions indefinitely. Secondly, these contracts are settled in cryptocurrency rather than fiat currency, providing traders with more flexibility and accessibility. Additionally, perpetual futures utilize a funding mechanism to ensure that the contract's price closely tracks the spot price of the underlying asset. This funding mechanism helps to prevent price discrepancies and encourages market participants to trade in the same direction as the prevailing market sentiment. Overall, perpetual futures offer traders the ability to profit from both rising and falling markets, making them a popular choice in the digital asset trading space.
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• pavan kalyanJan 24, 2025 · 5 months ago
  When it comes to perpetual futures in the realm of digital assets, there are a few key principles that traders should be aware of. Firstly, perpetual futures contracts are typically traded on margin, which means that traders only need to deposit a fraction of the contract's value to open a position. This leverage can amplify both profits and losses, so it's important for traders to manage their risk accordingly. Secondly, perpetual futures contracts are marked to market regularly, meaning that the profits and losses are settled daily. This ensures that traders' account balances accurately reflect the current value of their positions. Lastly, perpetual futures contracts often have a funding rate that is exchanged between long and short positions. This funding rate helps to maintain the contract's price in line with the spot price of the underlying asset. By understanding these principles, traders can make more informed decisions when trading perpetual futures in the digital asset market.
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• satyanarayana panthamJan 20, 2024 · a year ago
  BYDFi, a leading digital asset exchange, offers perpetual futures contracts as part of its trading platform. These contracts have become increasingly popular among traders due to their unique features and potential for profit. With BYDFi's perpetual futures, traders can enjoy the benefits of leverage and the ability to trade both long and short positions. The contracts are settled in cryptocurrency, providing traders with a seamless and efficient trading experience. BYDFi's perpetual futures also incorporate a funding mechanism to ensure that the contract's price accurately reflects the spot price of the underlying asset. This helps to maintain a fair and transparent trading environment. Whether you're an experienced trader or just starting out in the world of digital assets, BYDFi's perpetual futures offer a valuable opportunity to diversify your portfolio and capitalize on market movements.
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