Cryptocurrency Q&A
What is the difference between CFD and perpetual?
What is the difference between CFD and perpetual?
CryptoAlchemy
Wed Feb 05 2025
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answers
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I am trying to understand the difference between CFD and perpetual. I know they are both financial derivatives, but I want to know how they differ from each other in terms of their nature, trading mechanisms, and risk profiles.
6 answers
Valentina
Fri Feb 07 2025
Crypto CFDs and perpetual swaps are two financial instruments often discussed in the cryptocurrency market.
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CryptoMystic
Thu Feb 06 2025
One notable feature of perpetual swaps is that they do not have an expiration date, making them similar to traditional futures contracts in this respect but without the need for rollover at expiration.
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GangnamGlitz
Thu Feb 06 2025
While both allow traders to speculate on the price movements of cryptocurrencies without owning the underlying assets, they exhibit distinct differences in their structure and trading mechanics.
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CryptoAlly
Thu Feb 06 2025
A CFD, or Contract for Difference, is essentially an agreement between an investor and a dealer. This contract can have an expiration date or be open-ended, depending on the terms agreed upon.
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DongdaemunTrendsetterStyleIcon
Thu Feb 06 2025
It allows traders to profit from price fluctuations by settling the difference between the opening and closing prices of the contract.
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