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What is perpetual futures. Are perpetual futures more suitable for long-term investors? Perpetual futures can be used by long-term investors to gain exposure to cryptocurrencies without acquiring the underlying assets. These contracts are a type of derivative financial instrument that allows traders to speculate on the future price of an underlying asset without actually owning it. Are you curious about what perpetual trading is? Dec 24, 2023 · Learn about perpetual futures contracts in finance and how they work. ‍ What Are Perpetual Futures? ‍ Both futures contracts and perpetual futures are derivatives. May 22, 2025 · Spot vs. What is the difference between standard futures and perpetual Feb 5, 2025 · Learn everything about crypto perpetual futures, including how they work, benefits, strategies, and trading tips for success in this detailed guide. Key takeaways: What is a perpetual futures contract? What are the differences between perpetual and traditional futures Mar 6, 2024 · Standard futures contracts are typically more suitable for short-term trading due to their fixed expiry dates and well-established liquidity. , going long, or selling, i. Dec 13, 2023 · Perpetual Futures Explained, which also examines their special benefits and features as well as how they affect the dynamics of financial markets. Oct 28, 2024 · Note: To learn more about the differences between USDC Perpetual Contract and USDT Perpetual Contract on Bybit, please refer to FAQ — USDC Contract. These contracts can either speculate on the future Feb 18, 2025 · Perpetual futures have changed derivatives trading by offering a futures -like contract without an expiration date. May 23, 2023 · Learn about the growth of decentralized perpetual future exchanges, and how leverage trading has contributed to an expanding derivatives market. Aug 16, 2024 · Perpetual futures are an innovative financial instrument that has achieved notable traction in the crypto market. The trader can hold the transaction for the period that suits him. Below, we break down what perpetuals trading is, its history, and how to get started with it at Aug 5, 2024 · Discover the key differences between perpetual futures vs spot trading, and learn how to choose the best strategy for your trading goals. What are perpetual futures contracts Perpetual futures contract is a special type of futures contract, which is essentially an agreement between two parties to transact a particular asset at a given date and price. Futures trading allows users to enter positions on margin (leverage) using borrowed funds to optimize capital. To ensure perpetual contracts’ prices correspond to their underlying markets, crypto exchanges created a mechanism known as funding rate. Traders are able to hold a position as long as they want. Dec 5, 2024 · In cryptocurrency, perpetuals trading has become a popular way to speculate on price movements without actually owning the asset. Master contract expiration, margin requirements, and practical trading strategies to profit in both rising and falling markets. Jun 24, 2024 · Quarterly futures and perpetual futures are two well-liked instruments that have earned considerable traction. Perpetual futures are very popular in cryptocurrency trading, but unknown in traditional finance. A specific sub-account with futures trading ena Apr 24, 2025 · OKX Europe - Learn about perpetual futures contracts. Also known as perpetual swaps or simply ‘perps’, they represent the obligation to buy or sell an asset at a specific price in the future. When users trade perpetual futures, they incur a funding fee, which is the mechanism to bring the spot and perpetual futures prices as close to one another as possible. We believe they are trailing indicators for price, but may be an Oct 21, 2024 · A perpetual future contract doesn’t include the expiration date unlike traditional futures contracts. Dec 2, 2024 · Perpetual futures also encourages delta-neutral arbitrage traders to take opposing positions to collect funding rate fees. Put differently: A derivative mimics the value, i. Sep 10, 2024 · Perpetual futures essentials Perpetual futures are a type of derivative contract without an expiry date, allowing traders to hold positions indefinitely and speculate on the price of an asset. If you’re considering trading futures, it’s important to understand the pros and cons of perpetual and quarterly futures. This type of trading is often done with derivatives such as options and futures Jun 28, 2024 · Perpetual futures contracts are a continuous betting and hedging mechanism for predicting the change in a cryptocurrency’s value without any predetermined expiration date. Sep 23, 2024 · Learn how perpetual futures work and why they matter in cryptocurrency trading. Perpetual futures (or “perps” for short) are a type of derivative trading instrument. Furthermore, perpetual future contracts are traded at a price that is equal or close to the spot market price. Sep 23, 2022 · Perpetual futures contracts are a type of financial derivative. With their growing adoption, perpetual futures are changing how traders hedge Jul 4, 2024 · Futures Contracts and Perpetual Futures Contracts (Perps) are financial instruments that allow you to profit from crypto price movements without owning the underlying assets. USDC Futures Contracts Currently, Bybit only supports BTC and ETH USDC Futures Contracts. May 26, 2023 · Futures contracts, often simply called futures, are a type of financial contract that creates an obligation between seller and buyer for the sale of an asset at a fixed date for a set price in the future, regardless of the market value of the asset on that date. Here’s how they work and what you need to know before trading. perpetual futures trading: Learn their key differences, benefits, and when to trade each for maximum effectiveness. In essence, perpetual futures contracts offer a way for traders to speculate on cryptocurrency price movements with enhanced leverage and flexibility. They are standard futures and perpetual futures, each standing out to have their own features and purposes. Jan 27, 2022 · Since perpetual futures contracts never settle, exchanges use Funding Rates to ensure that futures prices and index prices converge on a regular basis. Perpetual futures contracts are quite similar to traditional futures contracts but with some key differences. , going short perpetual futures contracts. Oct 6, 2023 · Perpetual futures traders often have a higher risk tolerance, ready to stake more for potentially higher returns. Aug 6, 2024 · Discover does perpetual futures affect spot price, exploring their relationship, mechanisms, and market implications. These are special types of contracts that let traders guess the future prices of […] Sep 28, 2023 · Perpetual futures are derivative contracts without expiration, allowing traders to speculate on cryptocurrency price movements with leverage. Here’s how to buy and sell them on-chain. Using leverage allows a user to enter a position with a larger size than their account balance. Binance allows margin trading - short and long Bitcoin - with leverage up to 125x Jun 4, 2023 · In the second installment of our Gemini Foundation Academy series, we take a look at perpetual futures. This guide covers their benefits, risks, funding rates, and leverage, providing essential strategies for successful perpetual futures trading. Oct 12, 2023 · It is recalculated frequently so that the spot and the perpetual market converge. In particular, we show that the futures Aug 3, 2020 · Futures are especially useful for portfolio diversification. The funding rate is a small periodic payment that traders on one side of Jul 15, 2024 · Characterized by their availability for high leverage, high risk-high reward trading, ease of exit from the futures contract, and relative complexity for beginners, perpetual futures, or perps, are one of the most liquid instruments and more fascinating concepts in crypto. Perpetual futures offer large amounts of leverage to entice investors, but given the high volatility arkets, many of these trade leverage on liquidity in cryptocurrency perpetual futures, and analyze the fees collected by the exchanges for these trades. Even better, you can trade with leverage. A perpetual futures contract is a derivative financial instrument with no expiry date, used extensively in cryptocurrency trading. May 20, 2025 · Discover what perpetual futures are and how they revolutionize crypto trading. Funding Rates are periodic payments made to or by traders who are long or short based on the difference between perpetual contract markets and spot prices. Dec 5, 2024 · What perpetual swap contracts are, how to use them in place of crypto futures and the things that you should keep in mind while using crypto perps. Oct 23, 2024 · Introduction of Perpetual Futures and Crypto Futures The crypto market has grown a lot. It has reached many highs, and many more retail investors are getting involved. Learn about their unique features, uses, risks, and how to trade these flexible, leveraged derivative contracts without expiration dates. A perpetual futures contract is a type of futures contract without an expiry date. With Ripple futures, you can control more XRP tokens using leverage ranging from 10x to 50x, depending on the Jun 27, 2025 · Bitcoin Futures & Perpetual Guide – What is BTCUSDT perpetual, how to trade with leverage, go long or short, margin rules, trading fees, and key risks involved. Futures contracts are agreements to trade (buy or sell) an asset at a predetermined price at a specific time in the future. This type of trading, centered on perpetual futures contracts, offers flexibility and potential for high returns by allowing traders to hold positions indefinitely. Jun 19, 2025 · Binance Futures is a crypto derivative trading platform that enables traders to trade assets based on future prices. If you’re comfortable with the idea that the market’s swings can work both for and against you, and you have strategies in place to mitigate losses, perpetual futures might be your calling. This means that you can bet on whether they believe SOL or ETH will go up or down, without having to actually buy SOL or ETH. Start trading now! Jul 10, 2025 · Perpetual futures let traders speculate on asset price movements without actually owning them. Jun 9, 2024 · Perpetual futures are the most actively traded product in crypto. In this article, we’ll explain what 永續合約是什麼？ 永續合約（Perpetual Futures）全名「永續期貨合約」，是一種幣圈獨有且常見的投資工具，它的英文縮寫是 PERP，例如比特幣永續合約，就稱之為 BTC－PERP。 永續合約是從期貨合約演變而來。 Jul 4, 2025 · Beginner's guide and tutorial to Binance exchange's futures. Perpetual Futures in the crypto market is just like regular perpetual Apr 15, 2025 · What are Perpetual contracts? To understand what perpetual contracts are, we must first understand what futures contracts are, so let us get to it. index/spot price, of a predefined asset. Traditional futures contracts include a set expiration date, but perpetual futures allow traders to hold positions indefinitely, offering a unique opportunity for continuous trading and flexibility. Feb 17, 2025 · How do perpetual futures contracts impact cryptocurrency trading in emerging markets like China? Our research uncovers key insights. Mar 21, 2025 · This post will examine futures trading, what it is, what to keep in mind as a beginner, as well as the limitations of this trading method Trade BTCUSDT perpetual contracts on Binance Futures - the world's leading crypto futures trading exchange with deep liquidity and low fees. 6 days ago · The best crypto futures trading platforms include MEXC, Binance, OKX, CoinEx, KCEX, PrimeXBT, etc. Why is the funding rate important? Unlike traditional futures, perpetual futures contracts have no expiration date. Discover how to trade contracts across crypto, stocks, forex, and commodities markets with leverage while managing risk. Understand Bitcoin perpetual futures, their functionality, and comparison with traditional futures. May 20, 2025 · Perpetual futures, also known as ‘perpetual swaps’, ‘perpetuals’, or ‘perps’, allow traders to speculate on the future price of an underlying asset. Perpetuals provide Jan 22, 2024 · Before diving into the specifics of Bitcoin Perpetual Futures, let’s understand the basics of a futures contracts. What is a perpetual contract?As the crypto industry advances, and the number of use cases keep growing, there are also multiple trading tools coming into exi. Delta-neutral arbitrage traders seek to take advantage of price discrepancies in the market by simultaneously buying and selling assets in order to profit from the difference in prices. Unlike the spot markets, where trades are settled instantly, futures contracts represent an agreement Perpetual futures are like futures (derivative contracts or agreements to buy or sell a commodity at a specified price) but without an expiration date. What is a perpetual futures contract? A perpetual contract is a special type of futures contract, but unlike the traditional form of futures, it doesn’t have an expiry date. With Binance futures, you can speculate on the future price movements of cryptocurrencies by buying and selling futures contracts, which are agreements to buy or sell an asset at a predetermined price on a specific future date. The calculation methodology for funding rates varies across exchanges, but skews positive by design. Other than that, the trading of perpetual contracts is based on an underlying Index Price. May 30, 2023 · Perpetual futures contracts can result in rewarding trades. Across most crypto exchanges, the perpetual futures trading volume is at least five times higher than that of spot volume. Feb 21, 2024 · Perpetual futures are a novel financial instrument in which the market price regularly aligns with the underlying crypto asset‘s spot price, mainly through the funding rate. We derive explicit expressions for the no-arbitrage price of various perpetual contracts, including linear, inverse, and quantos futures in both discrete and continuous-time. One unique aspect of perpetual futures is the funding rate mechanism, a periodic payment between traders that helps keep the futures price closely aligned with the spot price of the asset. So one can hold a position for as long as they like. Perpetual futures contracts, also known as perps, in quantitative finance are a special type of derivative that allow traders to speculate on the price of a cryptocurrency without an expiration date. Mar 23, 2023 · Perpetual futures contracts are a type of derivative financial instrument that allows traders to speculate on the price movements of various commodities without actually owning them. With perpetual trading, you can speculate on the future prices of cryptocurrencies. In essence, a futures contract is a legally binding agreement to buy or sell a particular commodity, currency, or financial instrument at a predetermined price at a future date. The trading platform has several advantages. Nov 22, 2023 · What is Perpetual Protocol? How does PERP work? Read our guide to Perpetual Protocol’s futures exchange and start trading PERP on Bitstamp by Robinhood. You can read "What is Futures Trading" if you want to learn more about the basics of futures trading. Perpetual futures have become a popular instrument in crypto trading because they allow traders to speculate on price movements without owning the underlying asset. Perpetual futures, or perps, are contracts that let you speculate on the price movements of an asset without needing to own the asset itself. This means that they derive their value from an underlying asset or index. Originally popularized in crypto markets, they provide traders with continuous exposure to price movements while using a funding rate mechanism to maintain price alignment with the underlying asset. But what is the difference between a perpetual future and a traditional normal future contract? I’m glad you asked Jan 18, 2023 · The trading of perpetual contracts is comparable to that of futures contracts; however, in the case of perpetual contracts, the trader has more leverage and does not immediately exchange the Explore the world of perpetual futures in crypto trading. Nov 28, 2024 · What Are Perpetual Futures in Crypto Trading? Perpetual futures are derivatives contracts that allow traders to speculate on the price of a cryptocurrency without an expiry date. These financial derivatives allow traders to speculate on the future price of an asset without an expiration date, offering unique opportunities and risks. In futures trading there are two main types crypto traders should be aware of. Aug 20, 2024 · Perpetual futures, also known as perpetual swaps or “perpetuals,” are a type of derivative contract that allows traders to speculate on the future price of an asset without an expiration In finance, a perpetual futures contract, also known as a perpetual swap, is an agreement to non-optionally buy or sell an asset at an unspecified point in the future. In addition, the basis for trading in perpetual futures is the underlying price index, which consists of the average value of the asset according to the main spot markets, as well as the relative trading volumes Sep 8, 2019 · The Perpetual Contract is an attempt to take advantage of a Futures Contract - specifically, the non-delivery of the actual commodity - while mimicking the behavior of the Spot market in order to reduce the price gap between the Futures Price and the Mark Price. Nov 23, 2022 · A perpetual futures contract is a special type of contract characterized by the absence of a set execution period. In this setting, crypto futures and perpetual contracts have become popular ways to invest. Traders can hold their positions perpetually unless they are liquidated. Understand the different types of perpetual futures contracts available, and their pros and cons. Mar 23, 2025 · Perpetual futures contracts have become a popular instrument in the world of cryptocurrency trading. The USDC Futures Contracts will be available for trading after 8AM UTC to 9AM UTC on the day of listing. Discover how crypto perpetuals work and why they’re attractive. Feb 26, 2025 · What are perpetual futures? Learn how traders use crypto perpetual contracts to hedge, speculate, and maximize profits with leverage in the market. In this article, we will delve into what perpetual futures contracts are, how they work, and the advantages and Learn about the specifications of Perpetual Futures products on Coinbase, including trading details and features. When trading perpetual futures, you have exposure to the price of a financial instrument without owning it, offering unique trading opportunities that allow you to potentially profit from the rise and fall in the price of an asset, depending on your trading position. Bitcoin perpetual futures had three times the average daily volume of spot products in 1Q24. What is Perpetual Trading? Perpetuals, perpetual swaps, or perps are a special type of futures contract without an expiration date. Apr 24, 2025 · OKX - Learn about perpetual futures contracts. Jan 17, 2023 · A What Is Perpetual Futures Contract is an agreement to non-optionally buy or sell an asset at an unspecified point in the future. Discover their benefits, risks, and how they differ from traditional futures contracts. This guide details how they work, the risks, and what to know about perps. Traders don’t need to worry about the expiry as these are perpetual contracts, and traders don’t need to own them as well. Exchanges have continued to implement new rules lowering the Apr 17, 2023 · What are perpetual futures in crypto? Perpetual futures in crypto are a type of derivative contract that allows traders to take long or short positions on cryptocurrencies without an expiration date, enabling them to benefit from price fluctuations and leverage their investments. Mar 18, 2025 · Learn the essentials of futures trading in this comprehensive beginner's guide. Unlike traditional futures, perpetual futures are settled through a funding mechanism and are primarily used for speculation and hedging. Learn how to trade perpetual contracts, quarterly contracts, options and more on Binance Futures — the leading crypto derivative platform by trading volume. Sep 20, 2024 · Perpetual trading allows traders to profit whether the market is bullish or bearish. The funding rate is a small periodic payment that traders on one side of Perpetual futures are designed to mirror the spot price of an asset, which is the current market price for buying or selling the asset immediately. Unlike traditional futures contracts, perpetual futures are designed to be held indefinitely, which can lead to a different set of dynamics Jul 20, 2024 · What is a perpetual futures contract? Understand perpetual contracts, trading strategies, and risk management for crypto traders. Perpetual futures are a type of derivative contract that allows traders to speculate on the future price of an asset without an expiration date. Perpetual futures contracts work by adjusting the “funding rate” based on the distance between the contract price and the spot price. As their name implies, perpetual futures do not have an expiry or final settlement date. Jan 24, 2025 · Learn how to hedge your crypto spot position with perpetual futures to protect against market risks and volatility. Hence, perpetual contract trading is an VALR offers perpetual futures trading to qualifying customers by jurisdiction. This guide covers the definition of perpetual futures, their mechanics, strategies, and role in modern trading. These financial instruments allow you to take long or short positions on Ripple’s price movements, potentially amplifying your returns through leverage. Perpetual futures are designed to mirror the spot price of an asset, which is the current market price for buying or selling the asset immediately. Unlike traditional futures contracts, perpetual futures do not settle or expire at a specific time, making them a flexible and attractive option for traders. e. Jun 29, 2025 · Explore the best crypto futures trading platforms including their pros, cons, and learn how to trade crypto perpetual futures contracts. Definition, Understanding, and Example of Perpetual Futures Perpetual futures are Sep 8, 2019 · 2. To get the most out of trading futures, you can start with finding the right exchange and diversifying your portfolio. To keep futures prices closely aligned with the spot price, perpetual futures use a funding rate mechanism—a unique feature that sets them apart from traditional futures. Jul 25, 2021 · Since perpetual futures contracts never settle in the traditional sense, exchanges need a mechanism to ensure that futures prices and index prices converge on a regular basis. It Sep 17, 2021 · Perpetual Futures is a form of derivatives instrument which means that traders can maintain leveraged positions in any time frame. Funding rates are often seen as a measure of sentiment and leverage. Margin requirements are a crucial aspect of perpetual trading as they serve as Jun 21, 2025 · Understand perpetual futures contracts with crypto trading examples. Find out more here. Apr 15, 2025 · Perpetual Contracts are a type of futures contract which allow traders to speculate on the future price of a given asset by buying, i. VALR currently offers up to 60x leverage depending on the pair chosen. Jun 26, 2025 · Ripple futures and perpetual contracts offer traders powerful tools to gain exposure to XRP without owning the underlying asset. Full breakdown of funding rates, leverage, and liquidation risks. One of the main Feb 24, 2023 · Perpetual contracts let traders speculate on crypto prices without holding tokens. Jul 14, 2019 · What is a perpetual futures contract? A perpetual contract is a special type of futures contract, but unlike the traditional form of futures, it doesn’t have an expiry date. For instance, if a perpetual contract trades at a premium (perpetual price > spot price), the funding rate will generally be positive, and long traders will need to pay the short in the futures market. Jul 29, 2024 · A perpetual futures contract, sometimes known as a perpetual swap, is a type of derivative commonly used in cryptocurrency that allows traders to speculate on the price of an asset. Jul 7, 2025 · Learn about perpetual futures (perps). Perpetual futures are one of the most popular products traded in the crypto space. 4 days ago · Perpetual futures offer greater flexibility, allowing traders to engage in leveraged trading and enter or exit the market at any time. Mar 14, 2025 · An overview of the best decentralized exchanges (DEXs) for trading perpetual futures contracts with leverage, including details on maximum leverage, etc. What Is a Perpetual Futures Contract? A Dec 13, 2022 · Perpetual futures -- swap contracts that never expire -- are by far the most popular derivative traded in cryptocurrency markets, with more than $100 billion traded daily. Think of them like a continuous futures contract. Why do traders use perps? Perpetual futures offer a number of distinct advantages compared Jun 29, 2022 · This article will help you understand Perpetual Futures Contracts and how to optimise this trading option with Bitget. Perpetual futures are contracts without expiration date in which the anchoring of the futures price to the spot price is ensured by periodic funding payments from long to short. Perps make it possible to speculate on the prices of cryptocurrencies without actually owning the coins or tokens. Apr 28, 2025 · Perpetual futures let you trade crypto with leverage and no expiry. Dec 30, 2024 · In the world of finance and trading, perpetual futures contracts have become increasingly popular in recent years. Nov 10, 2021 · With no fixed expiration and settlement dates, it's not surprising that perpetual contracts appeal to many traders. gavzu bxzt hzbv cpmkf gmp ooml pslbdsc ohtoz vjbcyh bdg

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