What are perpetual futures on FTX and how do they work?
Dhananjay HireyNov 28, 2022 · 3 years ago5 answers
Can you explain what perpetual futures are and how they work on the FTX exchange?
5 answers
- Tobin WilkinsonJul 11, 2022 · 3 years agoPerpetual futures are a type of derivative contract that allows traders to speculate on the price movement of an underlying asset without actually owning the asset. On the FTX exchange, perpetual futures contracts are available for various cryptocurrencies, such as Bitcoin and Ethereum. These contracts have no expiration date and are designed to closely track the price of the underlying asset. Traders can go long (buy) or short (sell) these contracts, depending on their market outlook. The contracts are settled in the native cryptocurrency of the FTX exchange.
- Trinh HuỳnhMar 29, 2025 · 7 months agoPerpetual futures on FTX work similarly to traditional futures contracts, but with some key differences. Unlike traditional futures, perpetual futures do not have an expiration date, which means traders can hold their positions indefinitely. Additionally, perpetual futures use a funding mechanism to ensure that the contract price closely tracks the spot price of the underlying asset. This funding mechanism involves the exchange transferring funds between long and short positions to maintain balance in the market. Traders who hold positions opposite to the prevailing market direction pay or receive funding fees every 8 hours.
- Rahul SapraMay 05, 2023 · 3 years agoPerpetual futures on FTX are a popular choice for traders due to their flexibility and liquidity. The FTX exchange offers a wide range of perpetual futures contracts, allowing traders to diversify their portfolios and take advantage of different market trends. With its advanced trading features and competitive fees, FTX has gained popularity among both retail and institutional traders. However, it's important to note that trading perpetual futures involves risks, and traders should carefully consider their risk tolerance and use appropriate risk management strategies.
- AliciitFeb 21, 2025 · 9 months agoPerpetual futures on FTX are a type of derivative contract that allows traders to speculate on the price movement of cryptocurrencies without actually owning them. These contracts have no expiration date and are settled in the native cryptocurrency of the FTX exchange. Traders can go long or short these contracts, depending on their market outlook. FTX is known for its user-friendly interface and advanced trading features, making it a popular choice among cryptocurrency traders. However, it's important to note that trading perpetual futures involves a high level of risk and may not be suitable for all traders.
- Egelund MurphyMar 16, 2023 · 3 years agoPerpetual futures on FTX are a type of derivative contract that allows traders to profit from the price movement of cryptocurrencies without actually owning them. These contracts have no expiration date and are designed to closely track the price of the underlying asset. Traders can go long or short these contracts, depending on their market outlook. FTX is a reputable cryptocurrency exchange that offers a wide range of perpetual futures contracts, providing traders with ample opportunities to capitalize on market trends. However, it's crucial for traders to conduct thorough research and practice risk management when trading perpetual futures on FTX or any other exchange.
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