How do bitcoin perpetual swaps differ from futures?

3 answers

• Jonathan KwonApr 07, 2023 · 2 years ago
  Bitcoin perpetual swaps and futures are both derivatives contracts, but they have some key differences. Perpetual swaps are designed to mimic the features of a traditional futures contract, but they don't have an expiration date. This means that perpetual swaps can be held indefinitely, while futures contracts have a fixed expiration date. Additionally, perpetual swaps typically settle in a different way than futures contracts. Instead of physical delivery of the underlying asset, perpetual swaps settle in cash. This makes perpetual swaps more convenient for traders who don't want to deal with physical delivery or storage of the underlying asset.
  654

  327
• Ajeyo DeyJan 05, 2021 · 5 years ago
  Bitcoin perpetual swaps and futures may seem similar, but they have distinct characteristics. Perpetual swaps are a type of derivative contract that allows traders to speculate on the price of bitcoin without owning the underlying asset. They are designed to have no expiration date, which means they can be held indefinitely. On the other hand, futures contracts have a fixed expiration date, after which the contract is settled. Another difference is the settlement method. Perpetual swaps are settled in cash, while futures contracts can be settled through physical delivery of the underlying asset. This difference in settlement method can affect the trading strategies and risk management of traders.
  705

  235
• annApr 18, 2021 · 4 years ago
  Bitcoin perpetual swaps and futures have some notable differences. Perpetual swaps, like those offered by BYDFi, are a type of derivative contract that allows traders to speculate on the price of bitcoin without owning the underlying asset. They are similar to futures contracts in that they have leverage and can be traded on margin. However, perpetual swaps do not have an expiration date, which means they can be held indefinitely. This makes them more flexible for traders who want to take a long-term position. Additionally, perpetual swaps settle in cash, while futures contracts can be settled through physical delivery of the underlying asset. This difference in settlement method can affect the trading costs and logistics for traders.
  744

  186