What is the difference between perpetual contracts and futures contracts?
Perpetual contracts and futures contracts are two different types of derivative contracts, and their differences are mainly reflected in the following aspects:
1. Delivery Method: Perpetual contracts have no expiration date, positions can be held indefinitely without the need to deliver physical assets, while futures contracts have a fixed expiration date, and physical assets must be delivered upon expiration.
2. Price and Index: The price of perpetual contracts usually has a certain discrepancy from the index price of the underlying asset, while the price of futures contracts is consistent with the spot price of the underlying asset.
3. Financing Costs: Holding perpetual contracts requires paying financing costs or interest, because the price of perpetual contracts usually has a certain discrepancy from the index price of the underlying asset, while futures contracts do not require paying financing costs.
4. Leverage Ratio: Perpetual contracts typically have a high leverage ratio, which can amplify the investor's profits and losses, while the leverage ratio of futures contracts is relatively low.
