Fundamental knowledge you must understand before trading contracts!

Many friends encounter perpetual contracts and delivery contracts when trading Bitcoin but can't distinguish between them. Today, I'll help you understand in the simplest way to avoid pitfalls!

🔍 1. Perpetual Contracts

✅ Features:

• No expiration date, can be held indefinitely (unless liquidated).

• Funding rate mechanism: settled every 8 hours, bringing contract prices closer to spot prices.

• Suitable for short-term trading, flexible opening and closing positions.

⚠️ Risk Points:

• High leverage can easily lead to liquidation, funding rates may increase holding costs.

📅 2. Delivery Contracts

✅ Features:

• Has a fixed expiration date (e.g. quarterly contracts, weekly contracts, etc.), automatically settles after expiration.

• Prices are determined by market supply and demand, which may deviate significantly from spot prices.

• Suitable for arbitrage or hedging, such as miners locking in future prices.

⚠️ Risk Points:

• Must close positions or deliver before expiration, otherwise forced settlement will occur.

🆚 3. Core Differences Comparison

Comparison Items Perpetual Contracts Delivery Contracts

Expiration Date ❌ None ✅ Yes (Weekly/Monthly/Quarterly)

Price Anchoring Funding Rate Adjustment Delivery at Spot Price upon Expiration

Suitable for Short-term Traders Arbitrage/Hedging Players

Leverage Risk High (prone to liquidation) Relatively controllable

💡 4. Beginner Suggestions

1️⃣ Perpetual contracts are more suitable for short-term trading, but be aware that funding rates may eat into profits.

2️⃣ Delivery contracts are suitable for arbitrage or hedging, but you must pay attention to the expiration time.

3️⃣ Don't set leverage too high! Beginner suggestion: within 5 times, otherwise prone to liquidation.

🚨 Risk Warning

⚠️ The risk of contract trading is extremely high, do not follow blindly!

⚠️ It is recommended to practice with a demo account first, familiarize yourself with the rules before trading real money!$ETH $BTC #非农就业数据来袭 #​​Metaplanet拟筹资增持比特币​