A quick guide to contract trading: perpetual and delivery contracts
· Perpetual contracts pay or receive funding fees periodically. The cost of holding a position long term depends on the cumulative funding rates over the holding period.
· Perpetual contracts have no expiry date, so a position can be held long term as long as it is not liquidated. The funding rate helps keep the contract price close to the spot price.
Coin mentioned in this article: $BTC quoted at 83228.01, 24h +1.7%.
· Perpetual contracts pay or receive funding fees periodically. The cost of holding a position long term depends on the cumulative funding rates over the holding period.
· Perpetual contracts have no expiry date, so a position can be held long term as long as it is not liquidated. The funding rate helps keep the contract price close to the spot price.
Coin mentioned in this article: $BTC quoted at 83228.01, 24h +1.7%.