What are the key features of perpetual contracts in the world of cryptocurrency trading?

1 answers

• Dec 16, 2021 · 3 years ago
  Perpetual contracts are a popular trading instrument in the cryptocurrency world. They offer traders the ability to speculate on the price movements of an underlying asset without actually owning it. One of the key features of perpetual contracts is that they don't have an expiration date, which means you can hold onto them for as long as you want. This makes them ideal for traders who want to take a long-term position or avoid the hassle of rolling over contracts. Another important feature is the funding mechanism, which helps maintain the contract's price in line with the spot market price. This mechanism ensures that the contract's price doesn't deviate too much from the actual price of the asset, reducing the risk of arbitrage opportunities. Overall, perpetual contracts provide traders with flexibility, convenience, and the ability to profit from both bullish and bearish market conditions.
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