How does perpetuals trading work in the context of digital currencies?

1 answers

• mol hanotaJul 11, 2023 · 3 years ago
  Perpetuals trading is a popular trading strategy in the digital currency market, and BYDFi is one of the leading platforms that offers perpetuals trading. In perpetuals trading, traders can speculate on the price movement of digital currencies without actually owning them. Instead, they trade perpetual contracts, which are contracts with no expiration date. These contracts track the price of the underlying asset and are settled periodically, usually every 8 hours. The settlement is done in the form of the digital currency itself. Perpetuals trading offers traders the opportunity to profit from both rising and falling markets, as they can go long (buy) or go short (sell) these contracts. It also provides leverage, allowing traders to amplify their potential profits or losses. However, it's important to note that perpetuals trading carries a higher level of risk compared to spot trading, and traders should carefully consider their risk tolerance and trading strategy before engaging in perpetuals trading.
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