What is the difference between bitcoin perpetual swap and futures?

3 answers

• Roburt MpoAug 23, 2020 · 6 years ago
  Sure! Bitcoin perpetual swap and futures are both derivative contracts that allow traders to speculate on the price of bitcoin without owning the actual asset. However, there are some key differences between the two. Perpetual swaps are a type of futures contract that do not have an expiration date. They are designed to mimic the spot market and have no settlement. On the other hand, futures contracts have a specific expiration date and require settlement at the end of the contract period. Additionally, perpetual swaps often have funding rates that are used to maintain the contract's price close to the underlying asset's price. Futures contracts, on the other hand, may have different settlement mechanisms and funding rates. Overall, the main difference between bitcoin perpetual swap and futures lies in their expiration dates, settlement mechanisms, and funding rates.
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• Arnuuu_77Apr 02, 2025 · a year ago
  Bitcoin perpetual swap and futures are similar in that they both allow traders to speculate on the price of bitcoin. However, there are some important distinctions between the two. Perpetual swaps are designed to track the price of bitcoin in real-time, while futures contracts have a fixed expiration date. This means that perpetual swaps can be held indefinitely, while futures contracts have a predetermined end date. Additionally, perpetual swaps often have funding rates that are used to balance the contract's price with the underlying asset's price. Futures contracts may have different settlement mechanisms and funding rates. It's important to understand these differences before deciding which instrument is right for your trading strategy.
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• nida nafilaMay 04, 2023 · 3 years ago
  From a third-party perspective, BYDFi, a leading digital asset exchange, offers both bitcoin perpetual swap and futures contracts. The main difference between the two is that perpetual swaps do not have an expiration date, while futures contracts have a specific end date. Perpetual swaps are designed to closely track the spot market and have no settlement. On the other hand, futures contracts require settlement at the end of the contract period. Both instruments allow traders to speculate on the price of bitcoin, but the choice between perpetual swaps and futures depends on individual trading preferences and strategies.
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