Cryptocurrency Q&A
What is the difference between futures and perp?
What is the difference between futures and perp?
CryptoPioneerGuard
Tue Jul 30 2024
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7 answers
1714
Could you please explain the distinction between futures and perpetual contracts, or "perp" for short, in the realm of cryptocurrency trading? How do they function differently, and what are the key factors traders should consider when choosing between the two? Additionally, how do their price movements compare, and what implications do these differences have for risk management and profitability?
7 answers
Michele
Thu Aug 01 2024
Unlike their standard counterparts, perpetual futures lack a predefined expiration date, offering traders continuous exposure to the market without the need for rollovers.
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GyeongjuGloryDaysFestival
Thu Aug 01 2024
This characteristic fosters flexibility and convenience, as investors can maintain their positions indefinitely, adjusting strategies as market conditions evolve.
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emma_grayson_journalist
Thu Aug 01 2024
The perpetual futures mechanism involves two parties, with one taking a long position and the other a short position.
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BitcoinBaron
Thu Aug 01 2024
Perpetual futures contracts, though sharing similarities with traditional futures contracts, possess a fundamental distinction that sets them apart.
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Andrea
Thu Aug 01 2024
These counterparties engage in a dynamic process of paying each other on an ongoing basis, reflecting the fluctuations in the underlying asset's value.
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