Cryptocurrency Q&A
How long does a perpetual contract last?
How long does a perpetual contract last?
Elena
Wed Sep 18 2024
|
6 answers
1182
I understand that perpetual contracts are a type of financial derivative that allows traders to speculate on the future price movements of an asset without having to actually own it. However, I'm curious about the duration of these contracts. How long does a perpetual contract typically last? Is there a specific time frame or do they simply remain open indefinitely until a trader decides to close their position? I'm looking for a clear and concise explanation of the lifespan of perpetual contracts in the cryptocurrency and finance industry.
6 answers
MountFujiVista
Fri Sep 20 2024
Perpetual contracts, a unique type of financial instrument, cater to a specific market demand by offering an indefinite expiry date. This feature stands in contrast to traditional futures contracts, which have predetermined expiration dates.
Was this helpful?
297
54
Bianca
Fri Sep 20 2024
The perpetuity of perpetual contracts stems from their innovative settlement mechanism. Rather than terminating at a specified point, these contracts undergo a periodic "settlement" process.
Was this helpful?
210
88
Elena
Fri Sep 20 2024
Every eight hours, perpetual contracts undergo a crucial adjustment. If the perpetual price exceeds the underlying spot price, a funding fee is imposed on the long side of the contract.
Was this helpful?
191
51
GwanghwamunPride
Fri Sep 20 2024
This funding fee is a strategic tool that helps align the perpetual price with the spot market. By compensating the short side, it encourages the perpetual price to converge towards the more stable spot price.
Was this helpful?
167
99
AmyDavis
Thu Sep 19 2024
In the cryptocurrency realm, exchanges like BTCC play a pivotal role in facilitating perpetual contract trading. BTCC, a leading cryptocurrency exchange, offers a comprehensive suite of services that cater to various trading needs.
Was this helpful?
126
98
Load 5 more related questions
