Ouyiokex perpetual contract is a cryptocurrency derivative that allows traders to speculate on the future price of the underlying asset. It has the following characteristics: Leveraged trading: up to 100 times leverage, expanding potential profits; two-way trading: bullish or bearish on the underlying asset Assets, get two-way profit opportunities; no expiration date: hold positions indefinitely, waiting for satisfactory exit opportunities; funding rate: automatically adjusted according to market supply and demand, encourage participation, and increase liquidity.
What is the OEX Perpetual Contract?
Ouyikex Perpetual Contract is a cryptocurrency derivative that allows traders to speculate on the future price of the underlying asset. Unlike traditional futures contracts, perpetual contracts have no expiration date, meaning they can be held indefinitely.
Advantages of Perpetual Contracts:
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Leveraged Trading: Perpetual Contracts offer up to 100x leverage, allowing traders to expand potential profits with less capital.
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Two-way trading: Traders can be bullish (prediction of price increase) or bearish (prediction of price decrease) on the underlying asset, thereby obtaining two-way profit opportunities.
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No expiration date: Perpetual contracts have no expiration date, so traders can hold positions indefinitely until a satisfactory exit opportunity arises.
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Funding rate: The funding rate mechanism of the perpetual contract will automatically adjust according to market supply and demand, encouraging more traders to participate, thereby increasing liquidity.
Risks of Perpetual Contracts:
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Margin Requirements: Perpetual contracts require margin, which is the initial margin that traders must deposit to open a position. The higher the leverage, the higher the margin requirements.
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Liquidation Risk: If a trader’s position value falls below the margin requirement, their position may be liquidated, resulting in a loss of their entire margin.
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Volatility: The cryptocurrency market is highly volatile, which may cause severe fluctuations in the price of perpetual contracts, resulting in large losses for traders.
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Funding rate risk: Funding rates may fluctuate, which has an impact on traders’ profits and losses, especially those who hold positions for a long time.
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