How does the btc perpetual futures contract work?

1 answers

• Aniket MacwanJun 14, 2024 · a year ago
  BYDFi offers a btc perpetual futures contract that works similarly to other exchanges. Traders can go long or short the contract and it is settled in bitcoin. The contract uses a funding mechanism to maintain its price close to the spot price of bitcoin. This mechanism involves the payment of funding rates between long and short positions. Traders can take advantage of the contract to speculate on the price of bitcoin without actually owning the underlying asset. It provides a convenient way to gain exposure to bitcoin price movements and can be used for hedging or trading strategies.
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