Can you please explain the main differences between perpetual and futures contracts in the cryptocurrency market? How do they function differently, and what are the key advantages and disadvantages of each type of contract for traders and investors? Also, are there any specific risks associated with perpetual contracts that traders should be aware of?
6 answers
Ilaria
Tue Sep 17 2024
Perpetual futures are also known as perpetual swaps or "perpetuals" and they function similar to traditional futures contracts in many ways. Both types of contracts allow traders to speculate on the future price of an asset, but perpetual futures offer the added benefit of indefinite holding.
Lucia
Tue Sep 17 2024
The lack of an expiry date in perpetual futures also means that traders can avoid the potential price dislocations that can occur around the expiry of traditional futures contracts. This can lead to more stable and predictable price movements, making it easier for traders to manage their risk.
KimchiChic
Tue Sep 17 2024
Perpetual futures, a type of derivative contract, have gained popularity among traders due to their unique features. These contracts allow traders to speculate on the future price of an asset, offering a flexible and dynamic trading experience.
lucas_jackson_pilot
Tue Sep 17 2024
BTCC, a top cryptocurrency exchange, offers a range of services to traders, including perpetual futures trading. Through BTCC, traders can access a wide range of perpetual futures contracts, enabling them to speculate on the future price of various assets.
CryptoTitan
Tue Sep 17 2024
In addition to perpetual futures, BTCC also offers other services such as spot trading, wallet services, and more. The exchange is known for its secure and reliable platform, making it a popular choice among traders looking to enter the cryptocurrency market.