Which type of futures contract, perpetual or standard, is more commonly used in the cryptocurrency industry?

3 answers

• Dec 26, 2021 · 3 years ago
  Perpetual contracts are more commonly used in the cryptocurrency industry due to their unique features and benefits. Unlike standard contracts, perpetual contracts do not have an expiration date, allowing traders to hold positions indefinitely. This provides flexibility and eliminates the need to constantly roll over contracts. Additionally, perpetual contracts often have higher leverage options, enabling traders to amplify their potential profits. However, it's important to note that perpetual contracts also carry higher risks, as they are subject to funding rates and potential liquidation. Overall, the choice between perpetual and standard contracts depends on individual trading strategies and risk tolerance.
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• Dec 26, 2021 · 3 years ago
  In the cryptocurrency industry, both perpetual and standard futures contracts are commonly used. Perpetual contracts offer the advantage of no expiration date, allowing traders to hold positions for as long as they want. This can be beneficial for long-term trading strategies. On the other hand, standard contracts have fixed expiration dates, which can be advantageous for short-term trading or hedging purposes. Traders need to consider factors such as funding rates, liquidity, and risk management when choosing between the two types of contracts. It ultimately comes down to personal preference and trading objectives.
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• Dec 26, 2021 · 3 years ago
  Perpetual contracts are the preferred choice for many traders in the cryptocurrency industry. They offer several advantages, including the ability to trade with high leverage, 24/7 availability, and no expiration date. This flexibility allows traders to take advantage of market opportunities at any time. However, it's important to be aware of the risks associated with perpetual contracts, such as funding costs and the potential for liquidation. Traders should carefully consider their risk tolerance and trading strategy before deciding which type of contract to use. At BYDFi, we offer a wide range of perpetual contracts to cater to different trading needs.
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