Crypto trivia 📚 Perpetual and delivery contracts
Perpetual contracts pay or receive funding fees periodically. The cost of holding one long-term depends on the cumulative funding rate over that period.
Delivery contracts don’t involve funding fees. The price difference between the contract and the spot market is called the basis. The closer it gets to expiration, the closer the basis generally gets to zero.
I didn’t understand this back then, and wasted enough money to buy milk tea for several months.
Market at this moment: $BTC Current price: 76084 (24h -5.5%).
The market can change in an instant, so don’t rush to conclusions.
Perpetual contracts pay or receive funding fees periodically. The cost of holding one long-term depends on the cumulative funding rate over that period.
Delivery contracts don’t involve funding fees. The price difference between the contract and the spot market is called the basis. The closer it gets to expiration, the closer the basis generally gets to zero.
I didn’t understand this back then, and wasted enough money to buy milk tea for several months.
Market at this moment: $BTC Current price: 76084 (24h -5.5%).
The market can change in an instant, so don’t rush to conclusions.
