What factors should I consider when deciding whether to trade perpetual or quarterly futures in the world of cryptocurrencies?

7 answers

• Dec 29, 2021 · 3 years ago
  When deciding between perpetual and quarterly futures in the world of cryptocurrencies, there are several factors to consider. Firstly, perpetual futures contracts have no expiration date, which means you can hold your position indefinitely. This can be advantageous if you want to take a long-term approach or if you're uncertain about the market's direction. On the other hand, quarterly futures contracts have fixed expiration dates, which can provide more certainty and allow you to plan your trades accordingly. Additionally, perpetual futures often have higher trading volumes and liquidity compared to quarterly futures, which can impact your ability to enter or exit positions. It's important to assess your trading goals, risk tolerance, and market conditions before deciding which type of futures contract is best suited for your needs.
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• Dec 29, 2021 · 3 years ago
  When it comes to trading perpetual or quarterly futures in the world of cryptocurrencies, it's crucial to analyze the funding rates associated with perpetual futures. Perpetual futures contracts are designed to closely track the spot price of the underlying cryptocurrency through a funding mechanism. This funding mechanism ensures that the contract's price aligns with the spot price over time. However, if the funding rate is consistently positive, it means that long positions pay funding to short positions, which can eat into your profits if you hold a long position for an extended period. Conversely, if the funding rate is consistently negative, it means that short positions pay funding to long positions, which can benefit your profits if you hold a short position. Therefore, it's essential to monitor and understand the funding rates and their potential impact on your trading strategy.
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• Dec 29, 2021 · 3 years ago
  When deciding between perpetual and quarterly futures in the world of cryptocurrencies, it's important to consider the fees associated with each type of contract. Different exchanges may have varying fee structures for perpetual and quarterly futures. Some exchanges may charge higher fees for perpetual futures due to their higher trading volumes and liquidity. On the other hand, quarterly futures may have lower fees but could be subject to additional costs if you decide to roll over your position to the next contract. It's advisable to compare the fee structures of different exchanges and evaluate how they align with your trading strategy and potential profits. Remember to consider both the trading fees and any additional costs associated with holding or rolling over positions.
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• Dec 29, 2021 · 3 years ago
  When it comes to deciding between perpetual and quarterly futures in the world of cryptocurrencies, it can be helpful to seek advice from experienced traders or financial professionals. They can provide insights and guidance based on their expertise and market knowledge. Additionally, staying updated with the latest news and market trends can help you make informed decisions. Consider joining online communities or forums where traders discuss and share their experiences with different types of futures contracts. Remember that trading futures involves risks, and it's essential to conduct thorough research and develop a well-defined trading strategy before entering the market.
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• Dec 29, 2021 · 3 years ago
  Perpetual futures contracts, as the name suggests, do not have an expiration date. This means that you can hold your position for as long as you want. On the other hand, quarterly futures contracts have fixed expiration dates, typically every three months. The choice between perpetual and quarterly futures depends on your trading goals and strategy. If you prefer a more flexible approach and want to hold your position for an extended period, perpetual futures may be suitable. However, if you prefer to trade based on specific market cycles or events, quarterly futures can provide more structured trading opportunities. It's important to consider your risk tolerance, market conditions, and trading objectives when deciding which type of futures contract to trade.
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• Dec 29, 2021 · 3 years ago
  When considering whether to trade perpetual or quarterly futures in the world of cryptocurrencies, it's crucial to evaluate the market volatility and price movements. Perpetual futures contracts are designed to closely track the spot price of the underlying cryptocurrency, which means they can be more sensitive to price fluctuations. If you're comfortable with higher volatility and are confident in your ability to manage risk, perpetual futures can offer potential opportunities for profit. On the other hand, quarterly futures contracts may provide a more stable trading environment, as their expiration dates can help mitigate short-term price fluctuations. It's important to assess your risk tolerance and trading strategy to determine which type of futures contract aligns with your objectives.
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• Dec 29, 2021 · 3 years ago
  BYDFi, a leading digital asset exchange, offers both perpetual and quarterly futures contracts for trading cryptocurrencies. Perpetual futures contracts provide traders with the flexibility to hold positions indefinitely, while quarterly futures contracts have fixed expiration dates. BYDFi's perpetual futures contracts have competitive trading fees and high liquidity, making them suitable for both short-term and long-term trading strategies. The platform also provides advanced trading tools and features to enhance the trading experience. Whether you choose perpetual or quarterly futures, BYDFi ensures a secure and reliable trading environment for cryptocurrency enthusiasts. Join BYDFi today and explore the world of futures trading in cryptocurrencies!
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