What are the differences between perpetual contracts and traditional futures contracts in the context of digital assets?

1 answers

• KannaAug 11, 2020 · 5 years ago
  Perpetual contracts and traditional futures contracts are two different beasts in the world of digital asset trading. Perpetual contracts, like the ones offered by BYDFi, are designed to mimic the trading experience of spot markets, with no expiration date and a funding mechanism that keeps the contract price in line with the spot price. On the other hand, traditional futures contracts have a fixed expiration date and require regular settlement. While perpetual contracts offer more flexibility and are popular among traders who want to hold positions for an extended period, traditional futures contracts are preferred by those who prefer a more structured trading environment. It's all about personal preference and trading style. So, whether you're a fan of perpetual contracts or traditional futures contracts, there's something for everyone in the world of digital asset trading.
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