What advantages do perpetuals offer compared to futures in the cryptocurrency market?

3 answers

• PascaldaAug 06, 2021 · 4 years ago
  Perpetuals offer several advantages over futures in the cryptocurrency market. Firstly, perpetuals do not have an expiration date, allowing traders to hold positions for as long as they want. This provides flexibility and eliminates the need to constantly roll over contracts. Additionally, perpetuals are designed to closely track the spot price of the underlying asset, reducing the risk of basis risk and minimizing tracking error. Furthermore, perpetuals often have higher leverage options compared to futures, allowing traders to amplify their potential profits. Overall, perpetuals offer greater flexibility, reduced basis risk, and higher leverage options compared to futures in the cryptocurrency market.
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• Siddarth SarafJul 24, 2022 · 3 years ago
  When it comes to comparing perpetuals and futures in the cryptocurrency market, perpetuals have some distinct advantages. One major advantage is that perpetuals do not have an expiration date, which means traders can hold their positions indefinitely. This eliminates the need to constantly roll over contracts and provides more flexibility in trading strategies. Additionally, perpetuals are designed to closely track the spot price of the underlying asset, which reduces the risk of basis risk and ensures that the contract price closely reflects the market price. Lastly, perpetuals often offer higher leverage options compared to futures, allowing traders to potentially amplify their profits. Overall, perpetuals offer greater flexibility, reduced basis risk, and higher leverage options, making them an attractive choice for traders in the cryptocurrency market.
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• Areif MunandarDec 06, 2023 · 2 years ago
  Perpetuals offer several advantages over futures in the cryptocurrency market. Unlike futures contracts, perpetuals do not have an expiration date, which means traders can hold their positions for as long as they want. This provides more flexibility and eliminates the need to constantly roll over contracts. Additionally, perpetuals are designed to closely track the spot price of the underlying asset, which reduces the risk of basis risk and ensures that the contract price closely follows the market price. Moreover, perpetuals often offer higher leverage options compared to futures, allowing traders to potentially amplify their profits. Overall, perpetuals provide greater flexibility, reduced basis risk, and higher leverage options, making them a popular choice among traders in the cryptocurrency market.
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