Perpetual Contracts: A Look at the Cryptocurrency Market
In the presented screenshot, we see a list of cryptocurrency pairs marked with the word "Perpetual". This abbreviation indicates that we are dealing with perpetual futures contracts. These instruments have gained significant popularity in the cryptocurrency market due to their flexibility and opportunities for traders.
What are perpetual futures contracts?
Unlike traditional futures, perpetual contracts do not have an expiration date. This means that a trader can hold a position for as long as they deem necessary, without worrying about closing the contract by a certain deadline.
Key characteristics of perpetual contracts:
* No expiration date: A key difference from regular futures.
* Funding Rate mechanism: To keep the price of the perpetual contract close to the spot price of the underlying asset, a funding mechanism is used. Traders holding a position in the direction of the majority (bulls or bears) periodically pay a fee to those taking the opposite position.#SpotTrading.
$OG
$ONDO
$OP
In the presented screenshot, we see a list of cryptocurrency pairs marked with the word "Perpetual". This abbreviation indicates that we are dealing with perpetual futures contracts. These instruments have gained significant popularity in the cryptocurrency market due to their flexibility and opportunities for traders.
What are perpetual futures contracts?
Unlike traditional futures, perpetual contracts do not have an expiration date. This means that a trader can hold a position for as long as they deem necessary, without worrying about closing the contract by a certain deadline.
Key characteristics of perpetual contracts:
* No expiration date: A key difference from regular futures.
* Funding Rate mechanism: To keep the price of the perpetual contract close to the spot price of the underlying asset, a funding mechanism is used. Traders holding a position in the direction of the majority (bulls or bears) periodically pay a fee to those taking the opposite position.#SpotTrading.
$OG
$ONDO
$OP
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
XRP
2.4383
-4.91%