Cryptocurrency Q&A What does Perpetual SWAP mean?

What does Perpetual SWAP mean?

HallyuHero HallyuHero Mon Dec 16 2024 | 7 answers 858
I've encountered a term called 'Perpetual SWAP' in my research and I'm not quite sure what it means. Could someone explain the concept and its implications in simple terms? What does Perpetual SWAP mean?

7 answers

DongdaemunTrendsetting DongdaemunTrendsetting Wed Dec 18 2024
These contracts enable investors to engage in buying and selling the value of Bitcoin without the necessity of owning any physical Bitcoin.

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HanbokGlamour HanbokGlamour Wed Dec 18 2024
The funding rate mechanism plays a crucial role in perpetual contracts. It acts as a balancer, addressing the needs of both buyers and sellers.

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amelia_doe_explorer amelia_doe_explorer Wed Dec 18 2024
One significant advantage of perpetual contracts is their perpetual nature; they do not have an expiration date or a settlement date.

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Andrea Andrea Wed Dec 18 2024
Furthermore, perpetual contracts do not require the trading of the underlying asset, which in this case is Bitcoin.

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Federica Federica Wed Dec 18 2024
Perpetual contracts have emerged as a favored method for trading Bitcoin.

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