The U-based perpetual contract is an agreement to sell or purchase assets at a fixed price in which the currency used as collateral assets and calculation of profit and loss is the stable currency USDT. Perpetual contracts work in much the same way as futures contracts, with one significant difference, which is that a perpetual contract is a contract that has no expiry date.
There are similarities in how perpetual contracts and futures contracts work, but there are also significant differences. Perpetual contracts are contracts with no expiration date, and the pricing unit of U-standard contracts is the stable currency USDT. At the same time, the stable currency USDT is also used as a currency for collateral assets and profit and loss calculations. This design makes U-based contracts more stable when the market fluctuates, because unlike traditional contracts, they have no expiration date restrictions and investors can choose the holding time according to their needs. In addition, since the pricing unit is the stable currency USDT, investors can more easily conduct position management and risk control. Overall, the characteristics of U-based contracts provide investors with more flexibility and
One of the big advantages of perpetual contracts is that you can hold them indefinitely. There is no expiration or exercise date, which means that even if the price goes against your position, you won't be immediately put into a loss. You just need to make sure you have enough funds to back your position, then hold on and wait for the price to move in your favor again. This flexibility allows you to better manage risk because you are not limited by time. Additionally, because perpetual contracts are leveraged, you can take out larger positions with less capital, thus increasing your return on investment. However, it should be noted that high leverage also means higher risks, so you need to be cautious and sure when trading perpetual contracts. Take this case as an example. Let’s say you are absolutely certain that the price of Bitcoin will rise. But unfortunately, you can't know exactly how long this rise will take. If the price doesn't rise when the futures contract expires, you're in for a bad trade. However, with perpetual contracts, you can maintain your position continuously without being restricted by expiration time. This way, you maximize your chances of a successful trade.
Summary of features of U-based perpetual contracts
Therefore, perpetual contracts provide sellers with the convenience of selling assets when their prices fall, while also enabling buyers to buy when they expect asset prices to rise.
4) Perpetual contract trading is an index price calculated based on the average asset price and its corresponding trading volume.
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