What is a perpetual contract in the context of cryptocurrency trading?
Feldman ReeseMar 29, 2023 · 2 years ago1 answers
Can you explain what a perpetual contract is in the context of cryptocurrency trading? How does it work and what are its advantages?
1 answers
- C_MSep 26, 2024 · 9 months agoA perpetual contract is a type of trading contract that is commonly used in the cryptocurrency market. It allows traders to buy or sell a cryptocurrency at a specified price without any expiration date. This means that traders can hold their positions for as long as they want, giving them more flexibility compared to traditional futures contracts. Perpetual contracts are settled using a funding rate mechanism, which helps to keep the contract's price in line with the spot market price. This means that traders can profit from both upward and downward price movements, making perpetual contracts a popular choice for experienced traders. BYDFi, a leading cryptocurrency exchange, offers a wide range of perpetual contracts for traders to choose from.
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