How do perpetual futures contracts work for Cake coin?

3 answers

• Rakiullah SarkerMay 21, 2024 · a year ago
  Perpetual futures contracts for Cake coin are a type of derivative product that allows traders to speculate on the price of Cake coin without actually owning the underlying asset. These contracts have no expiration date, which means that traders can hold their positions indefinitely. They are settled in the form of perpetual swaps, where the difference between the contract price and the spot price is exchanged between the long and short positions. This allows traders to profit from both upward and downward price movements of Cake coin. Compared to traditional futures contracts, perpetual futures contracts offer more flexibility and do not require the constant rolling over of positions.
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• REYNALDO ANDRES BAUTISTA VENEGJul 05, 2025 · 16 days ago
  Perpetual futures contracts for Cake coin work by using a funding mechanism to ensure that the contract price closely tracks the spot price of Cake coin. This funding mechanism is designed to prevent the contract price from deviating too far from the spot price, and it is achieved through a funding rate that is periodically exchanged between long and short positions. If the contract price is higher than the spot price, long positions pay funding to short positions, and vice versa. This mechanism helps to keep the perpetual futures contract in line with the underlying asset and reduces the risk of manipulation.
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• Ryan CanningMar 12, 2024 · a year ago
  Perpetual futures contracts for Cake coin are a popular trading instrument on BYDFi, a leading cryptocurrency exchange. Traders can easily access these contracts on the platform and take advantage of the price movements of Cake coin. The platform provides a user-friendly interface and advanced trading features, making it convenient for both experienced and novice traders. With the increasing popularity of Cake coin, perpetual futures contracts have become an important tool for traders to hedge their positions and maximize their profits.
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