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What is the difference between OKB perpetual futures and regular futures?

avatarPatel DikshitDec 24, 2021 · 3 years ago3 answers

Can you explain the key differences between OKB perpetual futures and regular futures? I'm interested in understanding how these two types of futures contracts differ in terms of trading mechanics, settlement, and pricing. Additionally, I would like to know if there are any specific advantages or disadvantages associated with each type of futures contract. Thank you!

What is the difference between OKB perpetual futures and regular futures?

3 answers

  • avatarDec 24, 2021 · 3 years ago
    OKB perpetual futures and regular futures are two different types of futures contracts. OKB perpetual futures are perpetual contracts that do not have an expiration date, allowing traders to hold their positions indefinitely. On the other hand, regular futures contracts have a fixed expiration date. This means that traders need to close their positions before the expiration date or roll them over to a new contract. In terms of trading mechanics, OKB perpetual futures typically have higher leverage options compared to regular futures. Settlement for OKB perpetual futures is done in the underlying cryptocurrency, while settlement for regular futures is done in cash. As for pricing, OKB perpetual futures may have a funding rate mechanism to ensure the contract's price closely tracks the spot price, while regular futures may have a premium or discount to the spot price based on factors like time to expiration and market demand. It's important to consider your trading strategy and risk tolerance when choosing between OKB perpetual futures and regular futures.
  • avatarDec 24, 2021 · 3 years ago
    The main advantage of OKB perpetual futures is that they offer the flexibility of holding positions for an indefinite period. This can be beneficial for traders who want to take a long-term view on the market or hedge their positions over an extended period. Additionally, the higher leverage options available in OKB perpetual futures can amplify potential profits. However, it's important to note that higher leverage also increases the risk of losses. Regular futures, on the other hand, provide a fixed expiration date, which can be useful for traders who prefer shorter-term trading strategies or want to align their positions with specific market events. The settlement in cash for regular futures can also simplify the trading process for some traders. Ultimately, the choice between OKB perpetual futures and regular futures depends on your trading style, risk appetite, and specific trading goals.
  • avatarDec 24, 2021 · 3 years ago
    From a third-party perspective, BYDFi offers OKB perpetual futures contracts that allow traders to trade OKB with leverage. These perpetual contracts have no expiration date and offer various leverage options. Traders can benefit from the flexibility of holding positions for an indefinite period and potentially amplify their profits through leverage. However, it's important to carefully consider the risks associated with leverage trading and have a solid risk management strategy in place. BYDFi provides a user-friendly platform for trading OKB perpetual futures, with competitive fees and a range of trading tools to enhance the trading experience. It's important to conduct thorough research and consider your individual trading needs before engaging in leveraged trading on BYDFi or any other platform.