What is the difference between crypto perpetual futures and traditional futures in the US?

8 answers

• Galbraith HoldtAug 30, 2024 · 10 months ago
  Crypto perpetual futures and traditional futures in the US are both financial derivatives used for trading. However, there are several key differences between the two. Crypto perpetual futures are contracts that allow traders to speculate on the price movement of cryptocurrencies without an expiration date. They are perpetual because they do not have a fixed settlement date. On the other hand, traditional futures contracts have a fixed expiration date and require physical or cash settlement. Another difference is the underlying asset. Crypto perpetual futures are based on cryptocurrencies, while traditional futures can be based on various assets such as commodities, stocks, or indices. Additionally, crypto perpetual futures are typically traded on cryptocurrency exchanges, while traditional futures are traded on regulated exchanges. Overall, the main advantage of crypto perpetual futures is their flexibility and the ability to trade 24/7, while traditional futures offer more diverse underlying assets and are subject to stricter regulations.
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• Matvey BratishchevJan 08, 2021 · 4 years ago
  Crypto perpetual futures and traditional futures in the US have distinct characteristics that make them suitable for different trading strategies. Crypto perpetual futures, being perpetual contracts, do not have an expiration date, which allows traders to hold positions for as long as they want. This flexibility is particularly useful for traders who want to take advantage of long-term price trends in the cryptocurrency market. On the other hand, traditional futures contracts have a fixed expiration date, which makes them more suitable for short-term trading or hedging purposes. Additionally, crypto perpetual futures often have higher leverage options compared to traditional futures, which can amplify both profits and losses. It's important for traders to carefully consider their risk tolerance and trading objectives when choosing between the two.
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• Mueller AbdiAug 12, 2023 · 2 years ago
  From BYDFi's perspective, crypto perpetual futures offer a unique opportunity for traders to participate in the cryptocurrency market with enhanced flexibility. With no expiration date, traders can hold positions for as long as they desire, allowing them to capture long-term price movements. Additionally, crypto perpetual futures are traded on BYDFi's platform, which provides a user-friendly interface and advanced trading features. However, it's important to note that crypto perpetual futures carry their own risks, including high volatility and the potential for liquidation in the event of adverse price movements. Traders should carefully consider their risk tolerance and conduct thorough research before engaging in crypto perpetual futures trading.
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• Jessen MullinsDec 25, 2024 · 6 months ago
  Crypto perpetual futures and traditional futures both have their own advantages and disadvantages. Crypto perpetual futures offer the advantage of being available 24/7, allowing traders to react to market movements at any time. They also provide the opportunity to trade with higher leverage, which can amplify profits. However, the high volatility of cryptocurrencies can also lead to significant losses. Traditional futures, on the other hand, offer a wider range of underlying assets and are subject to stricter regulations, providing a more established and regulated trading environment. Traders who prefer a more diverse range of assets and a regulated market may find traditional futures more suitable. Ultimately, the choice between the two depends on the trader's risk appetite, trading strategy, and preference for asset diversity.
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• khubaibFeb 27, 2022 · 3 years ago
  Crypto perpetual futures and traditional futures are two different types of derivatives with their own unique characteristics. Crypto perpetual futures, as the name suggests, do not have an expiration date and allow traders to hold positions indefinitely. This makes them suitable for long-term trading strategies and capturing sustained price movements in the cryptocurrency market. On the other hand, traditional futures have a fixed expiration date and are commonly used for short-term trading or hedging purposes. They offer a wider range of underlying assets, including commodities, stocks, and indices, providing traders with more diversification options. It's important for traders to carefully consider their trading objectives and risk tolerance when deciding between crypto perpetual futures and traditional futures.
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• Dipak TambeJul 10, 2022 · 3 years ago
  When comparing crypto perpetual futures and traditional futures in the US, it's important to consider the differences in trading mechanisms and underlying assets. Crypto perpetual futures, being perpetual contracts, do not have an expiration date and are settled in cryptocurrency. This allows traders to hold positions for as long as they want and eliminates the need for physical or cash settlement. Traditional futures, on the other hand, have a fixed expiration date and require physical or cash settlement. They can be based on various assets such as commodities, stocks, or indices. Additionally, crypto perpetual futures are typically traded on cryptocurrency exchanges, while traditional futures are traded on regulated exchanges. Traders should carefully evaluate their trading objectives and preferences to determine which type of futures contract is more suitable for their needs.
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• MD Awal KhanAug 30, 2023 · 2 years ago
  Crypto perpetual futures and traditional futures in the US have different characteristics that appeal to different types of traders. Crypto perpetual futures, being perpetual contracts, allow traders to hold positions indefinitely and capture long-term price movements in the cryptocurrency market. This makes them attractive to traders who prefer a more flexible trading approach. On the other hand, traditional futures have a fixed expiration date, which makes them more suitable for short-term trading or hedging purposes. They offer a wider range of underlying assets, providing traders with more diversification options. It's important for traders to carefully consider their trading objectives, risk tolerance, and preferred trading style when choosing between the two.
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• mahdi aghSep 09, 2024 · 10 months ago
  Crypto perpetual futures and traditional futures in the US have their own unique features that cater to different trading strategies. Crypto perpetual futures, being perpetual contracts, do not have an expiration date and allow traders to hold positions indefinitely. This makes them suitable for long-term trading and capturing sustained price movements in the cryptocurrency market. On the other hand, traditional futures have a fixed expiration date and are commonly used for short-term trading or hedging purposes. They offer a wider range of underlying assets, including commodities, stocks, and indices, providing traders with more diversification options. Traders should carefully consider their trading objectives and risk tolerance when deciding between crypto perpetual futures and traditional futures.
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