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Perpetual futures contracts are a type of
derivative that has become increasingly
popular in the trading world.
Key Points:
No Expiry Date: Unlike traditional
futures, these contracts don't have
an expiry date.
Trading Opportunities: Provides
continuous trading opportunities
without the need for contract
rollovers.
As a result, traders
are able to hold
their positions
without having to
close them or roll
over their
contracts.
Funding Mechanism
Traders pay or
receive funding
fees to maintain
the price of the
contract close to
the underlying
asset price.
No Expiry Date Leverage
Traders may use
leverage to
manage a larger
position with a
smaller initial
investment
Trading Hours
Trade continuously 24/7 in Perpetual Futures
Have specific trading hours and may close during weekends
and holidays in Traditional Futures
Expiry Date
No set expiry date in Perpetual Futures
Fixed expiration date In Traditional Futures
Purpose
Often used for speculative trading in Perpetual Futures
Commonly used for hedging by producers and consumers to
lock in price in Traditional Futures
Funding Fees
The funding fee mechanism is unique to perpetual futures.
Traditional futures do not have funding fees
High Liquidity: Ensures that trades can
be executed quickly.
Leverage: Potential for higher returns
with smaller capital.
24/7 Trading: Markets are open around
the clock, especially in cryptocurrencies.
Flexibility: You may be flexible in your
trading tactics since these contracts
offer ongoing trading without the
requirement for rollover.
High Volatility: Prices can change
rapidly, leading to significant losses.
Leverage Risks: The high leverage
offered by perpetual futures can be a
double-edged sword. Funding Fees:
Continuous fees can erode profits over
time.
Start Small: Begin with smaller trades
to understand the market.
Educate Yourself: Continuously learn
and stay updated.
Risk Management: Always use stop-
loss orders to mitigate risks.
Before beginning an endless futures trading
career, it is essential to perform extensive
study and get a firm grasp of the market, just
like with any other investment.
When trading perpetual futures, you should
always carefully consider your trading strategy
and never risk more than you are willing to
lose. You can trade perpetual futures, an
intriguing and lucrative financial asset, with
success if you follow these easy instructions.
Discover how Intelisync can elevate your trading
experience today!.
Don't forget to leverage the capabilities of Intelisync for
a seamless and enhanced trading experience in the
world of DeFi and blockchain.
Our services include developing comprehensive NFT, DEFI,
RWA tokenization, Centralized exchange, decentralized
exchange systems, secure digital wallets, and customized
cryptocurrencies with robust security measures. Embrace
the future of trading with Intelisync’s advanced blockchain
solutions.
What is Perpetual Futures Contracts: A Guide for Beginners 2024

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What is Perpetual Futures Contracts: A Guide for Beginners 2024

  • 2. Perpetual futures contracts are a type of derivative that has become increasingly popular in the trading world. Key Points: No Expiry Date: Unlike traditional futures, these contracts don't have an expiry date. Trading Opportunities: Provides continuous trading opportunities without the need for contract rollovers.
  • 3. As a result, traders are able to hold their positions without having to close them or roll over their contracts. Funding Mechanism Traders pay or receive funding fees to maintain the price of the contract close to the underlying asset price. No Expiry Date Leverage Traders may use leverage to manage a larger position with a smaller initial investment
  • 4. Trading Hours Trade continuously 24/7 in Perpetual Futures Have specific trading hours and may close during weekends and holidays in Traditional Futures Expiry Date No set expiry date in Perpetual Futures Fixed expiration date In Traditional Futures Purpose Often used for speculative trading in Perpetual Futures Commonly used for hedging by producers and consumers to lock in price in Traditional Futures Funding Fees The funding fee mechanism is unique to perpetual futures. Traditional futures do not have funding fees
  • 5. High Liquidity: Ensures that trades can be executed quickly. Leverage: Potential for higher returns with smaller capital. 24/7 Trading: Markets are open around the clock, especially in cryptocurrencies. Flexibility: You may be flexible in your trading tactics since these contracts offer ongoing trading without the requirement for rollover.
  • 6. High Volatility: Prices can change rapidly, leading to significant losses. Leverage Risks: The high leverage offered by perpetual futures can be a double-edged sword. Funding Fees: Continuous fees can erode profits over time.
  • 7. Start Small: Begin with smaller trades to understand the market. Educate Yourself: Continuously learn and stay updated. Risk Management: Always use stop- loss orders to mitigate risks.
  • 8. Before beginning an endless futures trading career, it is essential to perform extensive study and get a firm grasp of the market, just like with any other investment. When trading perpetual futures, you should always carefully consider your trading strategy and never risk more than you are willing to lose. You can trade perpetual futures, an intriguing and lucrative financial asset, with success if you follow these easy instructions.
  • 9. Discover how Intelisync can elevate your trading experience today!. Don't forget to leverage the capabilities of Intelisync for a seamless and enhanced trading experience in the world of DeFi and blockchain. Our services include developing comprehensive NFT, DEFI, RWA tokenization, Centralized exchange, decentralized exchange systems, secure digital wallets, and customized cryptocurrencies with robust security measures. Embrace the future of trading with Intelisync’s advanced blockchain solutions.