How do perpetual futures contracts work and what happens when they expire?

3 answers

• lakshmi computerApr 29, 2026 · a month ago
  Perpetual futures contracts are a type of derivative product that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. These contracts have no expiration date, which means they can be held indefinitely. When a trader enters into a perpetual futures contract, they agree to buy or sell a certain amount of the cryptocurrency at a specified price in the future. The contract is settled in cash, with the difference between the contract price and the market price being paid out to the winning party. When these contracts expire, they are automatically rolled over into new contracts, ensuring that traders can continue to trade without interruption.
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• Fuck YouMar 12, 2021 · 5 years ago
  Perpetual futures contracts are like a never-ending game of trading. You can enter the game at any time and exit whenever you want. When these contracts expire, they are settled based on the difference between the contract price and the market price. If you're on the winning side, congratulations! You'll receive the profit. If you're on the losing side, well, better luck next time. It's important to note that perpetual futures contracts are highly leveraged, which means that even small price movements can result in significant gains or losses. So, it's crucial to manage your risk and only trade with what you can afford to lose.
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• Oc bash101Apr 11, 2026 · 2 months ago
  Perpetual futures contracts are a popular trading instrument in the cryptocurrency market. They work by allowing traders to speculate on the price of a cryptocurrency without actually owning it. These contracts have no expiration date, which means they can be held indefinitely. When a contract expires, it is automatically rolled over into a new contract. This allows traders to maintain their positions and continue trading without any interruption. It's worth mentioning that BYDFi, a leading cryptocurrency exchange, offers perpetual futures contracts with competitive fees and a user-friendly interface. So, if you're interested in trading perpetual futures contracts, BYDFi is definitely worth checking out.
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