How does the price of gold perpetual futures compare to traditional gold futures?

6 answers

• Nisitha LakshanAug 18, 2020 · 5 years ago
  Gold perpetual futures and traditional gold futures differ in their pricing mechanisms and trading features. Gold perpetual futures are perpetual contracts that do not have an expiration date, while traditional gold futures have specific expiration dates. This means that traders can hold gold perpetual futures indefinitely, while traditional gold futures require traders to close their positions before the expiration date. In terms of pricing mechanisms, gold perpetual futures are typically priced based on the spot price of gold, while traditional gold futures are priced based on the expected future price of gold. As for trading features, gold perpetual futures often offer higher leverage and lower trading fees compared to traditional gold futures. However, it's important to note that trading perpetual futures carries the risk of funding fees and potential liquidation if the position is not properly managed. Overall, the choice between gold perpetual futures and traditional gold futures depends on individual trading strategies and risk tolerance.
  1061

  531
• Dotson SingerOct 31, 2021 · 4 years ago
  When it comes to the price of gold perpetual futures versus traditional gold futures, there are a few key differences to consider. Gold perpetual futures are designed to track the price of gold with a funding mechanism that helps keep the price in line with the spot price. This means that the price of gold perpetual futures closely follows the spot price of gold, making it a popular choice for traders who want exposure to the gold market without actually owning physical gold. On the other hand, traditional gold futures are contracts that specify a future delivery date and price for gold. The price of traditional gold futures is influenced by factors such as supply and demand, interest rates, and geopolitical events. While both types of futures contracts allow traders to speculate on the price of gold, the pricing mechanisms and trading features differ, giving traders different options depending on their trading strategies and goals.
  946

  316
• seekosmSep 22, 2024 · 10 months ago
  Gold perpetual futures and traditional gold futures have their own unique characteristics. Gold perpetual futures, like those offered by BYDFi, are perpetual contracts that do not expire. They are designed to track the price of gold and provide traders with exposure to the gold market. The price of gold perpetual futures is typically based on the spot price of gold and may include a funding mechanism to keep the price in line with the spot price. On the other hand, traditional gold futures have specific expiration dates and are priced based on the expected future price of gold. Both types of futures contracts have their advantages and disadvantages. Gold perpetual futures offer flexibility as they do not expire, allowing traders to hold positions for as long as they want. They also often offer higher leverage and lower trading fees. However, trading perpetual futures carries the risk of funding fees and potential liquidation if the position is not properly managed. Traditional gold futures, on the other hand, may be more suitable for traders who prefer a specific delivery date and price for their gold contracts. Ultimately, the choice between gold perpetual futures and traditional gold futures depends on individual trading preferences and risk tolerance.
  1274

  319
• KulchePlusFeb 19, 2025 · 5 months ago
  The price of gold perpetual futures compared to traditional gold futures can vary due to differences in pricing mechanisms and trading features. Gold perpetual futures, also known as perpetual swaps, are derivative contracts that track the price of gold without an expiration date. They are typically priced based on the spot price of gold and may include a funding mechanism to ensure the price stays in line with the spot price. Traditional gold futures, on the other hand, have specific expiration dates and are priced based on the expected future price of gold. The pricing of traditional gold futures takes into account factors such as supply and demand, interest rates, and market sentiment. In terms of trading features, gold perpetual futures often offer higher leverage and lower trading fees compared to traditional gold futures. However, it's important to note that trading perpetual futures carries the risk of funding fees and potential liquidation if the position is not properly managed. Traders should consider their trading strategies and risk tolerance when deciding between gold perpetual futures and traditional gold futures.
  1145

  229
• Jeffrey RufusMar 26, 2022 · 3 years ago
  Gold perpetual futures and traditional gold futures have different pricing mechanisms and trading features. Gold perpetual futures, like those offered by BYDFi, are perpetual contracts that do not have an expiration date. They are designed to track the price of gold and provide traders with exposure to the gold market. The price of gold perpetual futures is typically based on the spot price of gold and may include a funding mechanism to keep the price in line with the spot price. Traditional gold futures, on the other hand, have specific expiration dates and are priced based on the expected future price of gold. The pricing of traditional gold futures takes into account factors such as supply and demand, interest rates, and market sentiment. In terms of trading features, gold perpetual futures often offer higher leverage and lower trading fees compared to traditional gold futures. However, it's important to note that trading perpetual futures carries the risk of funding fees and potential liquidation if the position is not properly managed. Traders should carefully consider their trading strategies and risk tolerance when deciding between gold perpetual futures and traditional gold futures.
  1209

  202
• KulchePlusJun 11, 2022 · 3 years ago
  The price of gold perpetual futures compared to traditional gold futures can vary due to differences in pricing mechanisms and trading features. Gold perpetual futures, also known as perpetual swaps, are derivative contracts that track the price of gold without an expiration date. They are typically priced based on the spot price of gold and may include a funding mechanism to ensure the price stays in line with the spot price. Traditional gold futures, on the other hand, have specific expiration dates and are priced based on the expected future price of gold. The pricing of traditional gold futures takes into account factors such as supply and demand, interest rates, and market sentiment. In terms of trading features, gold perpetual futures often offer higher leverage and lower trading fees compared to traditional gold futures. However, it's important to note that trading perpetual futures carries the risk of funding fees and potential liquidation if the position is not properly managed. Traders should consider their trading strategies and risk tolerance when deciding between gold perpetual futures and traditional gold futures.
  1145

  164