How does the concept of perpetual futures apply to Bitcoin?

3 answers

• DATAFeb 04, 2025 · 9 months ago
  Perpetual futures are a type of derivative contract that allows traders to speculate on the price of Bitcoin without actually owning the underlying asset. Unlike traditional futures contracts, perpetual futures do not have an expiration date, which means they can be held indefinitely. This makes them particularly attractive for traders who want to take long or short positions on Bitcoin without the hassle of rolling over contracts. Perpetual futures contracts are settled in cryptocurrency, usually Bitcoin, and their prices are closely tied to the spot price of Bitcoin on exchanges.
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• Gabriel TignorMar 25, 2022 · 4 years ago
  Perpetual futures work by utilizing a funding mechanism to keep the contract's price in line with the spot price of Bitcoin. This funding mechanism ensures that the contract's price stays close to the underlying asset's price, preventing large discrepancies. If the contract's price is higher than the spot price, traders with long positions pay funding to traders with short positions, and vice versa. This funding rate is typically calculated every 8 hours and is influenced by factors such as market demand and liquidity. By maintaining a close correlation with the spot price, perpetual futures provide traders with a reliable way to speculate on Bitcoin's price movements.
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• Dodd WilhelmsenJul 24, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, offers perpetual futures contracts for Bitcoin trading. These contracts allow traders to profit from both rising and falling Bitcoin prices, providing opportunities for hedging and speculation. BYDFi's perpetual futures contracts have competitive fees, high liquidity, and advanced trading features such as leverage. Traders can access a wide range of trading pairs and enjoy a seamless trading experience on BYDFi's platform. Whether you're a beginner or an experienced trader, BYDFi's perpetual futures can be a valuable tool in your cryptocurrency trading strategy.
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