Why can perpetual contracts be held indefinitely without expiring?
My understanding: The premium of a delivery contract over spot is often seen as reflecting holding costs and market sentiment, not as a prediction of the price at expiry.
Delivery contracts do not pay or receive funding fees. The price difference between the contract and spot is called the basis, which usually converges toward zero as expiry approaches.
What I do: If you hold a delivery contract, remember to keep an eye on its expiry date. As expiry approaches, decide in advance whether to close your position or roll it over to the next contract.
Current price: $BTC is trading at 77216 (24h -1.4%).
#BTC
Markets are risky; trade with caution.
My understanding: The premium of a delivery contract over spot is often seen as reflecting holding costs and market sentiment, not as a prediction of the price at expiry.
Delivery contracts do not pay or receive funding fees. The price difference between the contract and spot is called the basis, which usually converges toward zero as expiry approaches.
What I do: If you hold a delivery contract, remember to keep an eye on its expiry date. As expiry approaches, decide in advance whether to close your position or roll it over to the next contract.
Current price: $BTC is trading at 77216 (24h -1.4%).
#BTC
Markets are risky; trade with caution.