What do the current quarterly contracts and perpetual contracts in the currency circle mean? How do they operate?-web3.0-php.cn

Home

web3.0

What do the current quarterly contracts and perpetual contracts in the currency circle mean? How do they operate?

Hannah Marie Garcia

Oct 11, 2024 am 11:04 AM

Bitcoincryptocurrencycurrency circlePerpetual contractPerpetual contract tradingCurrent quarter contract

In the cryptocurrency market, quarterly contracts and perpetual contracts are the two main derivatives contracts, providing traders with flexible risk management and leverage trading strategies. Quarterly contracts are contracts that expire on a specific expiration date and are forced to settle, and can be used to speculate on market forecasts within a specific time period. A perpetual contract is a contract with no expiry date that allows multiple opening and closing operations, making it a useful tool for hedging or trading amid continued asset price changes.

What do the current quarterly contracts and perpetual contracts in the currency circle mean? How do they operate?

Quarterly contracts and perpetual contracts in the currency circle

In cryptocurrency trading, quarterly contracts and perpetual contracts Renewal contracts are two common derivatives contracts.

Definition

Quarterly contract: is a contract with a fixed expiration date and will be settled at the settlement price after expiration .
Perpetual contract: A contract that has no expiration date and can be held indefinitely.

Operation

Current Quarter Contract

Buy: Contract The price is lower than the price of the underlying asset, and the underlying asset is expected to rise.
Sell: The price of the contract is higher than the price of the underlying asset and the underlying asset is expected to fall.

Perpetual contract

Long (bullish): Buy the contract in the expectation that the price of the underlying asset will rise.
Short (Bearish): Sell a contract in the expectation that the price of the underlying asset will fall.

Note

The position will be automatically closed after the current quarter contract expires, while the perpetual contract can be held indefinitely.
Perpetual contracts are usually accompanied by funding rates, which depend on the relative balance of long and short positions.
Derivatives trading is highly leveraged and potentially high risk.

Example

Assume the Bitcoin spot price is $20,000.

Buy the current quarter contract: If you think the price of Bitcoin will increase, you can buy the current quarter contract that settles at $20,100.
Sell Perpetual Contracts: If you think the price of Bitcoin will fall, you can sell perpetual contracts.

The above is the detailed content of What do the current quarterly contracts and perpetual contracts in the currency circle mean? How do they operate?. For more information, please follow other related articles on the PHP Chinese website!

Statement

The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn

Who is the best digital currency exchange in the worldApr 22, 2025 am 08:51 AM

There is no "best" digital currency exchange, only the "most suitable" ones because everyone has different needs. 1. Newbies should choose simple and easy-to-understand exchanges, such as Coinbase. 2. Users who focus on security should choose Coinbase or Kraken. 3. Users who pursue rich trading options should choose Binance or Ouyi. 4. Users who like to trade derivatives should choose Bybit or Ouyi. 5. Users interested in new coins should choose Sesame to open the door.

What platform is PumpSwap? Which country is the PumpSwap platform from?Apr 22, 2025 am 08:48 AM

PumpSwap is a decentralized exchange launched by pump.fun, focusing on low-cost, cross-chain interoperability and Meme token trading. 1) Seamless token migration and transaction integration: deeply bound to pump.fun, tokens can be migrated to PumpSwap transactions for free. 2) Low cost and incentive mechanism: Provide zero-cost liquidity pool creation and handling fee sharing. 3) Cross-chain interoperability and multi-chain support: Through cooperation with TRON, SOL/TRX cross-chain transactions are realized, and the plan is to expand to Aptos and other chains. PumpSwap mainly serves the global crypto market and is a typical multinational blockchain project.

What are the digital currency trading apps suitable for beginners? Learn about the coin circle in one articleApr 22, 2025 am 08:45 AM

When choosing a digital currency trading platform suitable for beginners, you need to consider security, ease of use, educational resources and cost transparency: 1. Priority is given to platforms that provide cold storage, two-factor verification and asset insurance; 2. Apps with a simple interface and clear operation are more suitable for beginners; 3. The platform should provide learning tools such as tutorials and market analysis; 4. Pay attention to hidden costs such as transaction fees and cash withdrawal fees.

How to set stop loss in Ouyi Digital Currency App?Apr 22, 2025 am 08:42 AM

There are two ways to set a stop loss in the Ouyi Digital Currency App: 1. Set a stop loss on the trading page: Set a stop loss when opening a position or after opening a position. 2. Set stop loss on the specific position page: Click "Position", select the position, and set the stop loss trigger price and quantity.

Where to look at the ratio of long and short data in the currency circleApr 22, 2025 am 08:39 AM

The ten apps that can view the long-short data ratio in the currency circle are: 1. CoinMarketCap, providing comprehensive information; 2. Binance, trading platform, high liquidity; 3. OKX, world-leading, supports multiple trading; 4. TradingView, chart platform, rich technical analysis tools; 5. Kraken, European platform, high security; 6. Bitfinex, suitable for professional traders; 7. Bitstamp, stable and reliable; 8. Huobi, rich trading functions; 9. Coinglass, focusing on the contract market, friendly interface; 10. Delta, integrating market data, supporting long-short analysis.

How to make money in currency contracts? A list of tips for double contracts in the currency circleApr 22, 2025 am 08:36 AM

The core methods of profitability in currency circle contracts include: 1. Trend tracking and band operations, driving profit through technical analysis and news surface; 2. Arbitrage and hedging strategies, using cross-platform price spreads and options hedging; 3. Reasonable use of leverage, adjusting leverage multiples according to market fluctuations; 4. Risk control, setting stop loss and take profit and managing positions.

The latest inventory of the top ten digital currency exchanges in the world in 2025 and analysis of advantages and disadvantagesApr 22, 2025 am 08:33 AM

The top ten digital currency exchanges in the world in 2025 are: Binance, OKX, Gate.io, Coinbase, Kraken, Huobi, KuCoin, Bybit, Bitstamp and Upbit. 1. Newbie/institutional users should choose Coinbase and Kraken because of their strong security and compliance and transparency. 2. High frequency/derivative traders are suitable for use with Binance, OKX and Bybit, providing low rates and high liquidity. 3. Users who explore small currencies can choose KuCoin and Gate.io, but they need to pay attention to diversifying risks. 4. Users with localization needs can choose Huobi (Asia), Upbit (South Korea) and Bitstamp (Europe).

Top 10 virtual currency trading platforms with the lowest handling feeApr 22, 2025 am 08:30 AM

Binance spot trading fee is 0.1%, and holding BNB can be reduced to 0.025%; OKX rate is 0.1%-0.2%, with a minimum of 0.02%; Gate.io rate is 0.2%, with a minimum of 0.10%; FTX rate is 0.02%-0.05%, but has filed for bankruptcy; Coinbase Pro rate is as low as 0.05%, ordinary users; Kraken rate is 0.16%-0.26%, with a minimum of 0.10%; Bitfinex rate is 0.1%-0.2%, with a minimum of 0.02%; Huobi rate is 0.2%, with a minimum of 0.02%; KuCoin rate is 0.1%, with a minimum of 0.02%; Bithumb rate is 0.15%, with a minimum of 0.02%; Huobi rate is 0.2%, with a minimum of 0.02%; KuCoin rate is 0.1%, with a minimum of 0.02%;