What is the difference between ETH perpetual futures and traditional futures contracts?

3 answers

• Janice WisesJan 10, 2025 · 10 months ago
  ETH perpetual futures and traditional futures contracts differ in their expiration dates. Traditional futures contracts have a fixed expiration date, while perpetual futures contracts do not have an expiration date. This means that perpetual futures contracts can be held indefinitely, providing traders with more flexibility in their trading strategies.
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• Aidan NesbittSep 20, 2020 · 5 years ago
  One of the main differences between ETH perpetual futures and traditional futures contracts is the funding mechanism. Perpetual futures contracts use a funding rate to ensure that the contract price stays close to the spot price. This funding rate is periodically exchanged between long and short positions, which helps to prevent price manipulation and maintain market stability.
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• Jakob WetzelOct 02, 2022 · 3 years ago
  ETH perpetual futures and traditional futures contracts also differ in terms of settlement. Traditional futures contracts are settled at a specific date in the future, while perpetual futures contracts are settled on a daily basis. This means that traders holding perpetual futures contracts need to manage their positions and funding costs on a daily basis, which can be both an advantage and a challenge depending on their trading strategies.
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