What is the difference between crypto perpetual contracts and regular futures contracts?

4 answers

• Unai BenajesNov 03, 2024 · 9 months ago
  Crypto perpetual contracts and regular futures contracts are both derivatives products in the cryptocurrency market, but they have some key differences. Perpetual contracts are designed to mimic the trading experience of spot markets, allowing traders to hold positions indefinitely without expiration dates. On the other hand, regular futures contracts have fixed expiration dates and require traders to settle the contracts at the end of the specified period. Perpetual contracts also have funding mechanisms to ensure the contract price closely tracks the underlying asset's spot price, while futures contracts are settled based on the difference between the contract price and the spot price at the expiration date.
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• Sheridan HartleyApr 26, 2025 · 3 months ago
  Crypto perpetual contracts and regular futures contracts may seem similar, but they have distinct characteristics. Perpetual contracts provide traders with the flexibility to hold positions for as long as they want, without worrying about contract expiration. This makes them popular among traders who want to avoid the hassle of rolling over contracts. On the other hand, futures contracts have fixed expiration dates, which means traders need to actively manage their positions and roll over contracts to avoid settlement. Both types of contracts have their own advantages and disadvantages, so it's important for traders to understand their specific needs and trading strategies before choosing between them.
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• Mason NunezAug 21, 2021 · 4 years ago
  Crypto perpetual contracts and regular futures contracts have their own unique features. While perpetual contracts offer the advantage of no expiration dates, they also come with funding costs that need to be paid or received periodically. These funding costs are used to maintain the contract's price in line with the underlying asset's spot price. On the other hand, regular futures contracts have fixed expiration dates, which means traders need to plan their positions accordingly. It's worth noting that perpetual contracts are more commonly offered by certain exchanges like BYDFi, while futures contracts are available on a wider range of exchanges. Traders should consider factors such as liquidity, fees, and trading volume when choosing between these contract types.
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• rk GuptaJul 28, 2020 · 5 years ago
  Crypto perpetual contracts and regular futures contracts have some differences worth noting. Perpetual contracts are designed to eliminate the need for contract expiration, allowing traders to hold positions indefinitely. This makes them more flexible compared to futures contracts, which have fixed expiration dates. Perpetual contracts also have funding rates that are periodically paid or received based on the difference between the contract price and the underlying asset's spot price. On the other hand, futures contracts require traders to actively manage their positions and roll over contracts to avoid settlement. Both types of contracts have their own advantages and are suitable for different trading strategies and risk appetites.
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