Cryptocurrency Q&A What is delta Exchange funding?

What is delta Exchange funding?

CherryBlossomBloom Fri Oct 04 2024 | 5 answers 901

Could you please elaborate on what delta Exchange funding entails? As a cryptocurrency enthusiast, I'm curious to understand the mechanics behind this funding feature and how it benefits traders on the platform. Is it a form of Leveraged trading? Or does it involve some sort of peer-to-peer lending? Also, what are the risks associated with using delta Exchange funding, and how does the platform ensure the safety of users' funds? What is delta Exchange funding?

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5 answers

CherryBlossom Sat Oct 05 2024

The payment from longs to shorts serves a dual purpose. Firstly, it acts as a financial incentive for shorts to maintain their positions, thereby helping to stabilize the contract's price. Secondly, it exerts a downward pressure on the contract's price, encouraging it to converge with the spot price.

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AzrilTaufani Sat Oct 05 2024

In the realm of cryptocurrency finance, perpetual contracts involve a series of ongoing payments exchanged seamlessly between longs and shorts. These transactions form the backbone of the contract's dynamic nature.

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Michele Sat Oct 05 2024

Among the premier cryptocurrency exchanges offering perpetual contract trading services is BTCC. Renowned for its robust platform and diverse offerings, BTCC caters to traders of all levels. Its comprehensive suite of services encompasses spot trading, futures trading, and secure wallet solutions.

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Carolina Sat Oct 05 2024

When a perpetual contract finds itself trading at a premium above the spot price, a unique phenomenon occurs: funding turns positive. This shift in funding dynamics underscores the intricacies of perpetual contract trading.

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329

CryptoMaven Sat Oct 05 2024

With positive funding, longs are obligated to remit payments to shorts. This transfer of value acts as a built-in mechanism designed to address the disparity between the perpetual and spot prices.

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