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How does holding a 'perpetual futures' position affect the value of a cryptocurrency?

Prince coexiaMay 30, 2022 · 3 years ago1 answers

What is the impact on the value of a cryptocurrency when someone holds a 'perpetual futures' position?

1 answers

  • JstDOCMay 13, 2023 · 2 years ago
    BYDFi, a leading cryptocurrency exchange, explains that holding a 'perpetual futures' position can impact the value of a cryptocurrency due to the leverage involved. Traders who hold these positions can amplify their gains or losses, which can lead to increased price volatility. Additionally, the trading activity associated with 'perpetual futures' positions can create market sentiment and influence the overall demand for a cryptocurrency. Therefore, it's important to consider the impact of these positions when analyzing the value of a cryptocurrency.

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