What are the advantages and disadvantages of trading standard futures compared to perpetual futures in the crypto industry?

3 answers

• Pappas AvilaOct 25, 2021 · 4 years ago
  Trading standard futures in the crypto industry has its advantages and disadvantages. On the positive side, standard futures contracts have a fixed expiration date, which can provide traders with a clear timeline for their investments. Additionally, standard futures often have higher liquidity compared to perpetual futures, making it easier to enter and exit positions. However, standard futures also come with some drawbacks. The fixed expiration date can be a disadvantage if the market conditions are not favorable at the time of expiration, as traders may be forced to close their positions at a loss. Furthermore, standard futures contracts may require higher initial margin requirements compared to perpetual futures, which can limit the accessibility for some traders.
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• Felipe BorgacoJan 01, 2021 · 5 years ago
  When it comes to trading futures in the crypto industry, there are pros and cons to both standard futures and perpetual futures. Standard futures offer a clear expiration date, which can be beneficial for traders who prefer a structured approach. These contracts also tend to have higher trading volumes, providing better liquidity. However, there are drawbacks to consider. If the market conditions are unfavorable at the time of expiration, traders may face losses. Additionally, standard futures often require higher initial margin requirements, which can be a barrier for some traders. On the other hand, perpetual futures do not have an expiration date, allowing traders to hold positions indefinitely. This can be advantageous for those who want more flexibility. Perpetual futures also often have lower margin requirements, making them more accessible. However, the lack of an expiration date can also lead to potential risks, as positions can be held during volatile market conditions.
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• shaoNov 06, 2021 · 4 years ago
  Trading standard futures compared to perpetual futures in the crypto industry has its own set of advantages and disadvantages. Standard futures contracts have a fixed expiration date, which provides traders with a clear timeline for their investments. This can be beneficial for those who prefer a more structured approach. Additionally, standard futures often have higher liquidity, making it easier to enter and exit positions. On the other hand, perpetual futures do not have an expiration date, allowing traders to hold positions indefinitely. This can be advantageous for those who want more flexibility and do not want to worry about contract expirations. Perpetual futures also often have lower margin requirements, making them more accessible to a wider range of traders. However, the lack of an expiration date can also introduce additional risks, as positions can be held during volatile market conditions. It's important for traders to carefully consider their trading strategies and risk tolerance when choosing between standard futures and perpetual futures.
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