What is the purpose of perpetual futures contracts in the cryptocurrency market?

3 answers

• Cochrane OddershedeSep 27, 2021 · 4 years ago
  Perpetual futures contracts play a crucial role in the cryptocurrency market by allowing traders to speculate on the future price of cryptocurrencies without actually owning the underlying asset. These contracts have no expiration date, which means traders can hold their positions indefinitely. This provides flexibility and enables traders to take advantage of both rising and falling markets. Additionally, perpetual futures contracts often offer leverage, allowing traders to amplify their potential profits or losses. Overall, these contracts provide a way for traders to manage risk and profit from the volatility of the cryptocurrency market.
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• Hightower HightowerOct 02, 2023 · 2 years ago
  Perpetual futures contracts are like a never-ending roller coaster ride in the cryptocurrency market. They allow traders to bet on the future price of cryptocurrencies without actually owning them. It's like placing a bet on whether Bitcoin will go up or down in value. These contracts have no expiration date, so you can hold your position for as long as you want. They also offer leverage, which means you can multiply your potential gains or losses. Just be careful, because the cryptocurrency market can be a wild ride!
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• Miguel AngelApr 27, 2025 · 9 months ago
  Perpetual futures contracts, also known as perpetual swaps, are a popular trading instrument in the cryptocurrency market. They are offered by various exchanges, including BYDFi. These contracts allow traders to speculate on the price of cryptocurrencies without actually owning them. Unlike traditional futures contracts, perpetual futures contracts have no expiration date, which means traders can hold their positions indefinitely. They also often offer leverage, allowing traders to amplify their potential profits or losses. The purpose of these contracts is to provide traders with a way to profit from the volatility of the cryptocurrency market and manage their risk effectively.
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