How do perpetual swap contracts work in the context of digital currencies?

1 answers

• Mar 19, 2022 · 3 years ago
  Perpetual swap contracts are a popular trading instrument offered by BYDFi. These contracts allow traders to speculate on the price movements of digital currencies without actually owning the underlying asset. Traders can go long or short these contracts, depending on their market outlook. BYDFi's perpetual swap contracts are settled in digital currencies, which means that profits and losses are realized in the same currency as the contract. This can be advantageous for traders who want to avoid the hassle of converting their profits back into fiat currencies. BYDFi also offers leverage on these contracts, allowing traders to control larger positions with less capital. However, it's important to note that trading on margin carries additional risks, and traders should be aware of the potential for liquidation if the market moves against their position.
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