Digital currency perpetual contract trading platform
- 王林Original
- 2024-07-04 17:39:02761browse
The digital currency perpetual contract trading platform provides trading products similar to futures contracts, but does not have an expiration date. Instead, it uses a funding rate mechanism to regulate the consistency of market prices and spot prices. The platform allows traders to buy or sell contracts and make profits or losses based on judging the price trend of the underlying asset. The advantages of the platform include: indefinite holding of contracts, capital rate adjustment of prices, leveraged trading to amplify returns, and rich selection of underlying assets. However, the platform also has leverage risks, market fluctuation risks, funding rate costs, and platform selection risks.
The difference between digital currency perpetual contract trading platform
and traditional futures contracts
- Traditional futures contracts have expiration dates, while perpetual contracts have no expiration date.
- The perpetual contract uses a funding rate mechanism to ensure that the market price is consistent with the spot price.
The operating mechanism of the perpetual contract trading platform
- Traders buy or sell contracts based on judgment.
- The contract value is determined based on the spot price.
- Profit or loss determines profit or loss.
Advantages of the perpetual contract trading platform
- No expiry date: There is no time limit for holding the contract.
- Funding rate: Guarantee that the market price is consistent with the spot price.
- Leverage effect: Magnify gains and losses.
- Richness: Provide contracts for a variety of underlying assets.
Risks of Perpetual Contract Trading Platform
- Leverage Risk: Magnify gains and losses.
- Volatility: The digital currency market is highly volatile.
- Funding Rate: May result in additional costs.
- Platform Risks: Choosing a reputable platform is crucial.
The above is the detailed content of Digital currency perpetual contract trading platform. For more information, please follow other related articles on the PHP Chinese website!