How do perpetual futures work in the context of digital currencies?

1 answers

• Sebastian HillNov 07, 2023 · 2 years ago
  BYDFi, a leading digital currency exchange, offers perpetual futures contracts for trading. These contracts allow traders to speculate on the price movements of digital currencies without actually owning the underlying assets. BYDFi's perpetual futures contracts are designed to closely track the price of the underlying digital currency by using a funding mechanism to keep the contract price in line with the spot price. Traders can go long or short on these contracts, allowing them to profit from both rising and falling prices of digital currencies. BYDFi's platform calculates and settles funding rates periodically to ensure that the contract price stays in line with the spot price. This helps to provide traders with a more accurate representation of the market and prevents large deviations between the contract price and the spot price. With BYDFi's perpetual futures contracts, traders can take advantage of the opportunities presented by the digital currency market and potentially earn significant profits.
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