How does Huobi perpetual futures differ from traditional futures?

1 answers

• shadowspire jrApr 25, 2023 · 3 years ago
  Huobi perpetual futures differ from traditional futures in a few key ways. Firstly, Huobi perpetual futures do not have an expiration date, which means traders can hold their positions indefinitely. In contrast, traditional futures contracts have a fixed expiration date. Secondly, Huobi perpetual futures use a funding rate mechanism to keep the contract price in line with the spot price. This funding rate is exchanged between long and short positions every 8 hours, ensuring a fair market price. Additionally, Huobi perpetual futures offer higher leverage options, allowing traders to potentially amplify their profits or losses. On the other hand, traditional futures may have lower leverage options. Overall, Huobi perpetual futures provide more flexibility and risk management features compared to traditional futures contracts.
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