How does a perp exchange work and what makes it different from a regular exchange?

3 answers

• Arpita SinghNov 04, 2024 · 9 months ago
  Sure! A perpetual futures exchange is a type of cryptocurrency exchange that allows traders to speculate on the price of a cryptocurrency without actually owning the underlying asset. It works by using a funding rate mechanism to ensure that the price of the perpetual contract closely tracks the price of the underlying asset. This allows traders to profit from both upward and downward price movements. Unlike a regular exchange, where traders buy and sell actual cryptocurrencies, a perp exchange only deals with derivative contracts. This makes it more suitable for traders who want to engage in leveraged trading or hedge their positions without actually owning the underlying asset.
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• Buch SullivanJan 16, 2022 · 4 years ago
  A perp exchange operates differently from a regular exchange in terms of the trading instruments offered. While a regular exchange allows users to buy and sell actual cryptocurrencies, a perp exchange offers perpetual futures contracts. These contracts have no expiration date and are designed to track the price of the underlying asset. Additionally, perp exchanges often offer leverage, allowing traders to amplify their potential profits or losses. This makes them popular among more experienced traders who are comfortable with higher risk. However, it's important to note that trading on a perp exchange can be more complex and carries additional risks compared to trading on a regular exchange.
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• Gupta BorupJun 24, 2024 · a year ago
  At BYDFi, we offer a perp exchange that allows traders to access perpetual futures contracts. Our platform is designed to provide a seamless trading experience with advanced trading tools and features. With our perp exchange, traders can easily manage their positions, monitor market trends, and execute trades with low latency. We also prioritize the security of our users' funds and employ industry-leading security measures to safeguard against potential threats. Whether you're a beginner or an experienced trader, our perp exchange offers a range of features to suit your trading needs.
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