Can perpetual contracts in the currency circle be held for a long time?

No, perpetual contracts are not suitable for long-term holding for the following reasons: the accumulation of funding rates leads to huge capital costs; the funding rate reduces the margin rate and increases the risk of forced liquidation; the underlying assets are highly volatile and the long-term position risks are huge. It is recommended that the holding time of the perpetual contract be controlled within a few days to a few weeks.

Is it possible to hold long-term perpetual contracts

?

No, perpetual contracts are not suitable for long-term holding.

Reasons:

1. Funding rate: Perpetual contracts require regular payment of funding rate, and long-term holding will result in huge funds The cost, the longer it is held, the higher the cost.

2. Forced liquidation: When the margin rate of the perpetual contract is lower than the maintenance margin rate, the platform will automatically force liquidate the position, resulting in losses. The accumulation of funding rates will continuously reduce the margin rate and increase the risk of forced liquidation.

3. Volatility: The underlying assets of perpetual contracts often have high volatility, and long-term holdings may face huge risks caused by large price fluctuations, which may lead to huge losses.

Suggestions on suitable holding time:

Perpetual contracts are generally only suitable for short- and medium-term transactions. It is recommended that the holding time be controlled within a few days or weeks. Long-term holding will not only increase costs and risks, but also limit trading flexibility.

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