Can you explain the working principle of perpetual futures and how they are used in the cryptocurrency market?

13 answers

• Rohan KabadiDec 26, 2020 · 5 years ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. Unlike traditional futures contracts, perpetual futures do not have an expiration date, which means that traders can hold their positions indefinitely. These contracts are settled periodically, usually every 8 hours, through a funding mechanism that ensures the contract's price closely tracks the spot price of the underlying cryptocurrency. Perpetual futures are widely used in the cryptocurrency market for various purposes, including hedging, speculation, and arbitrage.
  649

  325
• Muhammad RehmanSep 20, 2024 · 10 months ago
  Alright, let me break it down for you. Perpetual futures are like regular futures contracts, but with a twist. They don't have an expiration date, so you can hold onto them for as long as you want. This makes them super popular in the crypto market because it allows traders to take advantage of price movements without actually owning the crypto. Plus, they're settled every 8 hours, which helps keep the contract price in line with the actual price of the crypto. So, whether you're hedging your bets or trying to make a quick buck, perpetual futures got you covered.
  569

  190
• Anusha SripathiDec 19, 2020 · 5 years ago
  Perpetual futures, as the name suggests, are futures contracts that don't have an expiration date. They are commonly used in the cryptocurrency market to speculate on the price movements of cryptocurrencies. Unlike traditional futures contracts, perpetual futures are settled periodically, usually every 8 hours, through a funding mechanism. This mechanism ensures that the contract's price closely tracks the spot price of the underlying cryptocurrency. Perpetual futures provide traders with the flexibility to hold their positions for as long as they want, making them a popular choice for both short-term and long-term trading strategies. At BYDFi, we offer a wide range of perpetual futures contracts for our users to trade and capitalize on the volatility of the cryptocurrency market.
  791

  198
• M.A RobMar 28, 2022 · 3 years ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. These contracts are similar to traditional futures contracts, but they don't have an expiration date. Instead, they are settled periodically, usually every 8 hours, through a funding mechanism. This mechanism ensures that the contract's price closely follows the spot price of the underlying cryptocurrency. Perpetual futures are widely used in the cryptocurrency market for various purposes, including hedging against price fluctuations and taking advantage of arbitrage opportunities. They provide traders with the flexibility to enter and exit positions at any time, making them a popular choice among cryptocurrency traders.
  803

  161
• ShashikumarApr 27, 2023 · 2 years ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. Unlike traditional futures contracts, perpetual futures do not have an expiration date. Instead, they are settled periodically, usually every 8 hours, through a funding mechanism. This mechanism ensures that the contract's price closely tracks the spot price of the underlying cryptocurrency. Perpetual futures are widely used in the cryptocurrency market for various purposes, including hedging against price volatility and leveraging trading positions. They provide traders with the opportunity to profit from both rising and falling markets, making them a popular choice for active traders and investors.
  782

  131
• Sage WongJun 22, 2025 · a month ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. These contracts are settled periodically, usually every 8 hours, through a funding mechanism that ensures the contract's price closely tracks the spot price of the underlying cryptocurrency. Perpetual futures offer traders the ability to go long or short on cryptocurrencies, providing opportunities for profit in both bullish and bearish market conditions. They are commonly used for hedging against price fluctuations and for leveraged trading strategies. Perpetual futures have gained popularity in the cryptocurrency market due to their flexibility and ability to provide exposure to the volatile cryptocurrency market without the need for owning the actual assets.
  844

  121
• Talita PiccirilloMar 31, 2023 · 2 years ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. These contracts are settled periodically, usually every 8 hours, through a funding mechanism that ensures the contract's price closely tracks the spot price of the underlying cryptocurrency. Perpetual futures provide traders with the ability to go long or short on cryptocurrencies, allowing them to profit from both upward and downward price movements. They are commonly used for various trading strategies, including hedging against price volatility and leveraging trading positions. Perpetual futures have become an integral part of the cryptocurrency market, providing traders with increased liquidity and flexibility.
  797

  100
• Domenico AltavillaNov 09, 2022 · 3 years ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. Unlike traditional futures contracts, perpetual futures do not have an expiration date. Instead, they are settled periodically, usually every 8 hours, through a funding mechanism. This mechanism ensures that the contract's price closely tracks the spot price of the underlying cryptocurrency. Perpetual futures are widely used in the cryptocurrency market for various purposes, including hedging against price volatility, managing risk, and taking advantage of trading opportunities. They provide traders with the ability to profit from both rising and falling markets, making them a popular choice among cryptocurrency traders.
  803

  90
• Cameron EllisonOct 23, 2021 · 4 years ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. These contracts are settled periodically, usually every 8 hours, through a funding mechanism that ensures the contract's price closely tracks the spot price of the underlying cryptocurrency. Perpetual futures provide traders with the flexibility to enter and exit positions at any time, making them a popular choice for active traders. They are commonly used for various trading strategies, including hedging against price fluctuations and leveraging trading positions. Perpetual futures have gained significant traction in the cryptocurrency market due to their ability to provide exposure to the volatile cryptocurrency market without the need for owning the actual assets.
  850

  85
• Esha RajpootFeb 25, 2025 · 5 months ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. These contracts are settled periodically, usually every 8 hours, through a funding mechanism that ensures the contract's price closely tracks the spot price of the underlying cryptocurrency. Perpetual futures provide traders with the flexibility to go long or short on cryptocurrencies, allowing them to profit from both upward and downward price movements. They are commonly used for various trading strategies, including hedging against price volatility and leveraging trading positions. Perpetual futures have become an essential tool in the cryptocurrency market, providing traders with increased liquidity and the ability to manage risk effectively.
  829

  76
• Nur yumna RafidaSep 23, 2024 · 10 months ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. These contracts are settled periodically, usually every 8 hours, through a funding mechanism that ensures the contract's price closely tracks the spot price of the underlying cryptocurrency. Perpetual futures provide traders with the flexibility to enter and exit positions at any time, making them a popular choice for active traders in the cryptocurrency market. They are commonly used for various trading strategies, including hedging against price fluctuations and leveraging trading positions. Perpetual futures have gained significant popularity due to their ability to provide exposure to the cryptocurrency market without the need for owning the actual assets.
  843

  71
• Azril TaufaniJan 16, 2022 · 4 years ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. These contracts are settled periodically, usually every 8 hours, through a funding mechanism that ensures the contract's price closely tracks the spot price of the underlying cryptocurrency. Perpetual futures provide traders with the flexibility to go long or short on cryptocurrencies, allowing them to profit from both upward and downward price movements. They are commonly used for various trading strategies, including hedging against price volatility and leveraging trading positions. Perpetual futures have become an integral part of the cryptocurrency market, providing traders with increased liquidity and the ability to manage risk effectively.
  828

  64
• James McCoyOct 21, 2024 · 9 months ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. These contracts are settled periodically, usually every 8 hours, through a funding mechanism that ensures the contract's price closely tracks the spot price of the underlying cryptocurrency. Perpetual futures provide traders with the flexibility to go long or short on cryptocurrencies, allowing them to profit from both upward and downward price movements. They are commonly used for various trading strategies, including hedging against price volatility and leveraging trading positions. Perpetual futures have gained significant traction in the cryptocurrency market due to their ability to provide exposure to the volatile cryptocurrency market without the need for owning the actual assets.
  870

  63