What are the differences between bitcoin perpetual swaps and futures?

3 answers

• Alexey MoskaltsovJul 17, 2024 · a year ago
  Bitcoin perpetual swaps and futures are both derivatives contracts that allow traders to speculate on the price movements of bitcoin. However, there are some key differences between the two. Perpetual swaps are a type of futures contract that has no expiration date, while traditional futures contracts have a fixed expiration date. This means that perpetual swaps can be held indefinitely, allowing traders to maintain their positions for as long as they want. On the other hand, futures contracts have a fixed expiration date, which means that traders must close their positions before the contract expires or roll over their positions to a new contract. Additionally, perpetual swaps are typically settled in cash, while futures contracts can be settled in either cash or physical delivery of the underlying asset. Overall, the main differences between bitcoin perpetual swaps and futures lie in their expiration dates and settlement methods.
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• Kripa Rachel jojiAug 26, 2020 · 5 years ago
  Bitcoin perpetual swaps and futures are similar in that they both allow traders to speculate on the price movements of bitcoin without actually owning the underlying asset. However, there are some key differences between the two. Perpetual swaps are designed to mimic the trading experience of spot markets, as they have no expiration date and can be held indefinitely. This makes perpetual swaps more suitable for traders who want to maintain long-term positions. On the other hand, futures contracts have a fixed expiration date, which means that traders must close their positions before the contract expires. This makes futures contracts more suitable for short-term trading strategies. Additionally, perpetual swaps are settled in cash, while futures contracts can be settled in either cash or physical delivery of the underlying asset. These differences in expiration dates and settlement methods make bitcoin perpetual swaps and futures suitable for different trading strategies and risk profiles.
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• Andre GreenSep 02, 2023 · 2 years ago
  Bitcoin perpetual swaps and futures are two popular derivatives products in the cryptocurrency market. While both allow traders to speculate on the price movements of bitcoin, there are some key differences between the two. Perpetual swaps are designed to track the price of bitcoin with minimal deviation, making them ideal for traders who want to hedge their exposure to bitcoin or speculate on its price without actually owning the asset. On the other hand, futures contracts have a fixed expiration date, which means that traders must close their positions before the contract expires. This makes futures contracts more suitable for short-term trading strategies. Additionally, perpetual swaps are settled in cash, while futures contracts can be settled in either cash or physical delivery of the underlying asset. These differences in tracking accuracy, expiration dates, and settlement methods make bitcoin perpetual swaps and futures suitable for different trading purposes and risk preferences.
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