What are the differences between OKEX perpetual futures and traditional futures contracts in the cryptocurrency market?

2 answers

• Jessen StevensMay 31, 2021 · 4 years ago
  Well, OKEX perpetual futures contracts are like the cool kids on the block. They don't have an expiration date, so you can hold onto them as long as you want. Traditional futures contracts, on the other hand, have a set expiration date, and you need to roll over your positions if you want to keep trading the same asset. It's like the difference between a never-ending party and a party that ends at midnight. Now, let's talk about funding rates. OKEX perpetual futures contracts have this thing called funding, which helps keep the contract price in line with the spot price of the underlying asset. Long and short positions exchange funding every 8 hours based on the difference between the contract price and the spot price. It's like a balancing act to make sure the contract price doesn't go too far off track. Traditional futures contracts don't have this mechanism, so their prices can sometimes go off on a wild ride. Last but not least, let's talk about trading fees. OKEX perpetual futures contracts usually have lower fees compared to traditional futures contracts. That's because you can trade perpetual futures on margin, which means you can control a larger position with less capital. It's like getting more bang for your buck. So, if you're looking to save some money on fees, perpetual futures might be the way to go. In summary, OKEX perpetual futures and traditional futures contracts in the cryptocurrency market have some key differences. Perpetual futures don't have an expiration date, they have a funding mechanism to keep the price in line with the spot price, and they usually have lower trading fees. It's like the difference between a never-ending party with lower costs and a party that ends at midnight with higher costs.
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• Dima StepchenkovAug 09, 2024 · a year ago
  When it comes to OKEX perpetual futures and traditional futures contracts in the cryptocurrency market, there are a few important differences to note. Firstly, perpetual futures contracts do not have an expiration date, meaning that traders can hold their positions indefinitely. On the other hand, traditional futures contracts have a fixed expiration date, after which the contract is settled and traders need to roll over their positions if they want to continue trading the same asset. Secondly, perpetual futures contracts have a funding mechanism that helps to keep the contract price in line with the spot price of the underlying asset. This funding mechanism ensures that the contract price closely tracks the spot price, reducing the risk of large deviations. Traditional futures contracts do not have this funding mechanism, and their prices can deviate from the spot price. Lastly, perpetual futures contracts typically have lower trading fees compared to traditional futures contracts. This is because perpetual futures contracts are traded on margin, allowing traders to control larger positions with less capital. Traditional futures contracts, on the other hand, do not involve margin trading and therefore have higher trading fees. In conclusion, the key differences between OKEX perpetual futures and traditional futures contracts in the cryptocurrency market are the absence of an expiration date, the presence of a funding mechanism, and the difference in trading fees.
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