Cryptocurrency Q&A
How do Binance perpetual futures work?
How do Binance perpetual futures work?
Michele
Tue Jun 25 2024
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5 answers
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Could you please elaborate on how Binance perpetual futures operate? As a cryptocurrency enthusiast, I'm curious about the mechanics behind this trading instrument. Specifically, I'd like to understand how the funding rate is calculated, how positions are settled, and the implications of leverage on potential profits and losses. Additionally, I'm interested in knowing if there are any specific strategies or best practices recommended for trading perpetual futures on Binance. Your insights would be greatly appreciated in helping me navigate this complex yet exciting market.
5 answers
TaekwondoMasterStrengthHonorGlory
Thu Jun 27 2024
Binance Futures offers perpetual futures contracts, a unique financial instrument that stands out for its indefinite lifespan.
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GinsengBoostPowerBoost
Thu Jun 27 2024
These perpetual futures contracts differ from traditional futures in that they do not possess an expiration date, allowing traders to maintain their positions indefinitely.
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Giuseppe
Thu Jun 27 2024
The pricing of perpetual futures contracts is determined by the interplay of supply and demand in the market, similar to other derivatives.
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mia_rose_painter
Thu Jun 27 2024
However, unlike traditional futures with a closing market, perpetual futures lack an explicit settlement price.
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CryptoVeteran
Wed Jun 26 2024
This absence of a settlement price means that conventional arbitrage opportunities, which rely on the convergence of spot and futures prices, are not available for perpetual futures contracts.
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