A quick explanation of a concept—a refresher for those who already know it.
What’s the difference between perpetual and delivery contracts?
In my view, perpetual contracts periodically pay or receive funding fees, and the cost of holding a position long term depends on the cumulative funding rate over that period.
Delivery contracts bring prices closer to the spot price through settlement at expiry. Perpetual contracts don’t expire, so funding fees play a similar role.
$BTC is at 78064 right now.
Before placing an order, check the liquidation price. If it’s too close to the current price, reduce your position size.
What’s the difference between perpetual and delivery contracts?
In my view, perpetual contracts periodically pay or receive funding fees, and the cost of holding a position long term depends on the cumulative funding rate over that period.
Delivery contracts bring prices closer to the spot price through settlement at expiry. Perpetual contracts don’t expire, so funding fees play a similar role.
$BTC is at 78064 right now.
Before placing an order, check the liquidation price. If it’s too close to the current price, reduce your position size.