What are the advantages and disadvantages of using eternal contracts in the cryptocurrency market?

1 answers

• Puggaard FrankJul 30, 2024 · a year ago
  As a representative of BYDFi, I can provide some insights into the advantages and disadvantages of eternal contracts in the cryptocurrency market. One advantage is the ability to trade 24/7 without expiration dates, which allows for greater flexibility and liquidity. Additionally, eternal contracts can provide traders with the opportunity to profit from both upward and downward price movements, regardless of whether they own the underlying asset. However, there are also risks associated with eternal contracts. The lack of expiration dates means that traders can be exposed to unlimited losses if the market moves against their position. Furthermore, eternal contracts may be subject to manipulation and price manipulation, which can impact the overall market. It's important for traders to carefully consider these factors and conduct thorough research before engaging in eternal contract trading.
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