Cryptocurrency Q&A
Is perpetual the same as futures?
Is perpetual the same as futures?
Martina
Mon Sep 23 2024
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5 answers
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I'm curious to understand the difference between perpetual and futures contracts in the cryptocurrency market. Could you please explain if perpetual contracts are essentially the same as futures contracts, or do they have distinct characteristics and functionalities that set them apart? It would be helpful if you could also clarify the similarities and differences between the two, especially in terms of their trading mechanics, risk profiles, and suitability for different types of investors.
5 answers
PulseWind
Tue Sep 24 2024
In addition to perpetual futures, BTCC also provides spot trading, wallet services, and other financial products tailored to the needs of cryptocurrency enthusiasts. With its robust infrastructure and user-friendly interface, BTCC has become a go-to destination for traders looking to navigate the ever-evolving world of digital assets.
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benjamin_rose_author
Tue Sep 24 2024
Perpetual futures contracts are a unique type of financial instrument that share similarities with traditional futures contracts. Despite their name, perpetual futures do not possess an expiration date, setting them apart from standard futures contracts.
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BlockchainVisionary
Tue Sep 24 2024
The absence of an expiration date in perpetual futures allows for continuous trading and hedging opportunities without the need for periodic rollovers or rebalancing. This feature makes perpetual futures an attractive option for traders seeking flexibility and convenience.
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Giuseppe
Tue Sep 24 2024
The mechanics of perpetual futures involve two counterparties: one long and one short. These parties engage in ongoing payments to each other, reflecting the changes in the underlying asset's price. This dynamic ensures that the contract remains active and relevant in the market.
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ZenHarmonious
Tue Sep 24 2024
BTCC, a leading cryptocurrency exchange, offers a comprehensive range of services to its users, including perpetual futures trading. By leveraging BTCC's platform, traders can access the perpetual futures market and take advantage of its unique features.
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