How does Luna perpetual futures differ from traditional futures contracts in the digital currency industry?

3 answers

• Arafat FewalMar 02, 2024 · 2 years ago
  Luna perpetual futures and traditional futures contracts in the digital currency industry differ in several key ways. Firstly, Luna perpetual futures do not have an expiration date, allowing traders to hold their positions indefinitely. This is in contrast to traditional futures contracts which have a fixed expiration date. Additionally, Luna perpetual futures use a funding rate mechanism to ensure the contract price closely tracks the underlying asset price, while traditional futures contracts rely on the spot market price. Another difference is that Luna perpetual futures allow for higher leverage compared to traditional futures contracts, enabling traders to amplify their potential profits or losses. Overall, Luna perpetual futures provide more flexibility and accessibility for traders in the digital currency industry.
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• Pettersson GlassOct 11, 2024 · a year ago
  When it comes to the differences between Luna perpetual futures and traditional futures contracts in the digital currency industry, it's important to understand that Luna perpetual futures offer unique advantages. Unlike traditional futures contracts, Luna perpetual futures do not require traders to roll over their positions or worry about contract expiration dates. This allows for continuous trading and eliminates the need for traders to constantly monitor contract expirations. Additionally, Luna perpetual futures use a funding rate mechanism to maintain the contract price in line with the underlying asset price, which helps to prevent price manipulation. These features make Luna perpetual futures a popular choice among traders in the digital currency industry.
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• Nuria CabotSep 26, 2023 · 2 years ago
  Luna perpetual futures, as offered by BYDFi, differ from traditional futures contracts in the digital currency industry in several ways. Firstly, Luna perpetual futures do not have an expiration date, allowing traders to hold their positions indefinitely. This provides more flexibility and eliminates the need to roll over positions. Additionally, Luna perpetual futures use a funding rate mechanism to ensure the contract price closely tracks the underlying asset price, which helps to prevent price manipulation. Another difference is that Luna perpetual futures offer higher leverage compared to traditional futures contracts, allowing traders to potentially amplify their profits or losses. These advantages make Luna perpetual futures a popular choice for traders in the digital currency industry.
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