What are the key differences between btc perpetual and other derivative products in the digital asset space?

3 answers

• starskyerAug 25, 2024 · a year ago
  BTC perpetual contracts and other derivative products in the digital asset space differ in several key aspects. Firstly, btc perpetual contracts are perpetual in nature, meaning they have no expiration date, while other derivative products may have fixed expiration dates. This allows traders to hold btc perpetual contracts for as long as they want without worrying about contract expiration. Secondly, btc perpetual contracts are settled in cryptocurrency, usually bitcoin, whereas other derivative products may be settled in fiat currency or other cryptocurrencies. This gives traders the opportunity to trade and profit solely in bitcoin. Lastly, btc perpetual contracts often have a funding mechanism that helps to maintain the contract's price close to the underlying asset's price. This funding mechanism ensures that the contract's price aligns with the spot price of bitcoin, providing traders with a fair and transparent trading environment.
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• Hieu SonJan 05, 2021 · 5 years ago
  When it comes to btc perpetual contracts and other derivative products in the digital asset space, the main differences lie in their contract duration, settlement currency, and funding mechanism. Btc perpetual contracts have no expiration date, allowing traders to hold their positions indefinitely. On the other hand, other derivative products may have fixed expiration dates, requiring traders to close their positions before the contract expires. In terms of settlement currency, btc perpetual contracts are settled in bitcoin, while other derivative products may be settled in fiat currency or other cryptocurrencies. Lastly, btc perpetual contracts often employ a funding mechanism to maintain the contract's price close to the underlying asset's price. This funding mechanism ensures that the contract's price remains in line with the spot price of bitcoin, minimizing the risk of price manipulation.
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• rodericusNov 17, 2023 · 2 years ago
  BTC perpetual contracts, such as those offered by BYDFi, have some key differences compared to other derivative products in the digital asset space. Firstly, btc perpetual contracts have no expiration date, allowing traders to hold their positions for as long as they desire. This is in contrast to other derivative products that have fixed expiration dates, requiring traders to close their positions before the contract expires. Secondly, btc perpetual contracts are settled in bitcoin, providing traders with the opportunity to trade and profit solely in bitcoin. Other derivative products may be settled in fiat currency or other cryptocurrencies, limiting the trading options for traders who prefer to focus on bitcoin. Lastly, btc perpetual contracts often employ a funding mechanism to maintain the contract's price close to the underlying asset's price. This funding mechanism ensures that the contract's price aligns with the spot price of bitcoin, promoting a fair and transparent trading environment for traders.
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