How does deribit perpetual futures work?

4 answers

• Clayton McleodMay 15, 2023 · 3 years ago
  Deribit perpetual futures are a type of derivative contract that allows traders to speculate on the price movement of an underlying asset without actually owning it. These contracts have no expiration date, which means they can be held indefinitely. Unlike traditional futures contracts, which have a fixed settlement date, perpetual futures use a funding mechanism to keep the contract's price in line with the spot price of the underlying asset. This funding mechanism ensures that the contract's price closely tracks the spot price, allowing traders to profit from price differences between the contract and the spot market. Deribit is a popular cryptocurrency exchange that offers perpetual futures trading.
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• Rohan RatwaniNov 09, 2021 · 5 years ago
  Perpetual futures on Deribit work by using a funding rate to maintain the contract's price in line with the spot price. The funding rate is a mechanism that ensures the contract's price remains close to the spot price by adjusting the funding payments between long and short positions. If the contract's price is higher than the spot price, long positions pay funding to short positions, and vice versa. This funding payment helps to incentivize traders to keep the contract's price in line with the spot price. Additionally, perpetual futures on Deribit have a funding interval of 8 hours, during which the funding rate is calculated and applied to the contract's price.
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• Shoaib GamingFeb 20, 2024 · 2 years ago
  Deribit is a leading cryptocurrency exchange that offers perpetual futures trading. Perpetual futures on Deribit are similar to traditional futures contracts but with some key differences. One major difference is that perpetual futures have no expiration date, meaning they can be held indefinitely. Additionally, perpetual futures use a funding mechanism to keep the contract's price in line with the spot price of the underlying asset. This funding mechanism ensures that the contract's price closely tracks the spot price, allowing traders to profit from price differences between the contract and the spot market. Deribit's perpetual futures trading platform provides traders with a seamless and efficient way to trade these contracts.
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• Ajatshatru SinghJul 10, 2022 · 4 years ago
  Perpetual futures on Deribit are a type of derivative contract that allows traders to speculate on the price movement of an underlying asset without actually owning it. These contracts have no expiration date, which means they can be held indefinitely. The contract's price is determined by the spot price of the underlying asset and is adjusted using a funding mechanism. This funding mechanism ensures that the contract's price closely tracks the spot price, allowing traders to profit from price differences between the contract and the spot market. Deribit, a well-known cryptocurrency exchange, offers perpetual futures trading as one of its main services.
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