Cryptocurrency Q&A
What is the difference between perpetual and futures in crypto?
What is the difference between perpetual and futures in crypto?
WhisperWind
Wed Oct 02 2024
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6 answers
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Can you explain the distinction between perpetual and futures contracts in the world of cryptocurrency? How do they differ in terms of their functionality, risk factors, and the way they are traded on exchanges? Understanding these nuances is crucial for investors looking to navigate the complex landscape of crypto derivatives.
6 answers
Bianca
Fri Oct 04 2024
A future perpetual contract, commonly referred to as "Perps," is a unique crypto derivative asset that shares similarities yet distinguishes itself from traditional futures contracts.
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Silvia
Fri Oct 04 2024
Unlike conventional futures contracts, which operate under a predetermined expiration date necessitating settlement, Perps operate without such a constraint.
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TaegeukChampion
Fri Oct 04 2024
The absence of an expiration date in Perps enables traders to maintain their positions indefinitely, offering increased flexibility and strategic opportunities.
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HanjiArtist
Thu Oct 03 2024
This perpetual nature of Perps encourages active trading, as traders can hold onto their positions, reacting to market fluctuations without the pressure of an impending expiration.
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ShintoMystical
Thu Oct 03 2024
Furthermore, Perps offer traders leverage, allowing them to amplify their potential profits or losses, adding an element of risk and reward not found in traditional trading methods.
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