What is the difference between fantom perpetual futures and regular futures?

3 answers

• mantisOct 10, 2024 · 9 months ago
  Fantom perpetual futures and regular futures are both financial derivatives in the cryptocurrency market, but they have some distinct differences. Perpetual futures do not have an expiration date, while regular futures have a fixed expiration date. This means that perpetual futures can be held indefinitely, allowing traders to maintain their positions for as long as they want. On the other hand, regular futures contracts have a specific expiration date, after which the contract is settled. Another difference is the funding mechanism. Perpetual futures use a funding rate to ensure that the price of the contract stays close to the spot price. This funding rate is paid between long and short positions. Regular futures, on the other hand, do not have a funding mechanism. Instead, they are settled at the expiration date based on the difference between the contract price and the spot price. Overall, the key differences between fantom perpetual futures and regular futures lie in the absence of an expiration date and the funding mechanism used to maintain the contract's price.
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• mohammed tausifullahJun 08, 2021 · 4 years ago
  When it comes to fantom perpetual futures and regular futures, the main difference lies in their structure and trading mechanics. Fantom perpetual futures are designed to mimic the price movements of the underlying asset, allowing traders to speculate on the future price without actually owning the asset. Regular futures, on the other hand, involve the actual delivery of the underlying asset at a predetermined future date. This means that traders who hold regular futures contracts are obligated to buy or sell the asset at the expiration date. Another difference is the availability of leverage. Perpetual futures often offer higher leverage compared to regular futures, allowing traders to amplify their potential profits or losses. However, it's important to note that higher leverage also comes with increased risk. In summary, fantom perpetual futures and regular futures differ in terms of their trading mechanics, delivery obligations, and leverage options.
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• PHÁT HUỲNH THỊNHNov 01, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, offers both fantom perpetual futures and regular futures for traders to choose from. The main difference between the two lies in their trading structure. Fantom perpetual futures are designed to provide traders with a continuous trading experience without the need for contract expiration. This allows traders to hold their positions for as long as they desire. On the other hand, regular futures have a fixed expiration date, after which the contract is settled. This means that traders need to manage their positions and ensure they close or roll over their contracts before the expiration date. Additionally, fantom perpetual futures use a funding mechanism to maintain the contract's price close to the spot price, while regular futures are settled based on the difference between the contract price and the spot price at expiration. Both types of futures have their own advantages and considerations, and traders should carefully evaluate their trading strategies and risk tolerance before choosing between fantom perpetual futures and regular futures.
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