All contracts on BexBack are perpetual contracts, offering cryptocurrency trading with a leverage of up to 100x.
A perpetual contract in cryptocurrency trading is a type of derivative contract without a fixed expiration date, allowing traders to enter or exit positions at any time without the need for physical asset delivery. Unlike traditional futures contracts, perpetual contracts lack a specific maturity date, enabling them to remain open until the trader chooses to close them. This type of contract allows traders to profit from both rising and falling asset prices.
Key features of perpetual contracts include:
- No Expiry Date: Perpetual contracts have no delivery date and can be held indefinitely until the trader decides to close the position.
- Price Tracking: The contract price typically tracks the real-time price of the underlying asset to maintain alignment with the market.
- Funding Rates: To ensure consistency between the contract price and the underlying asset price, perpetual contracts may incur periodic funding rates.
- Leverage Trading: Traders can use leverage to amplify their positions, increasing potential returns but also exposing themselves to greater risk.
- Liquidation Mechanism: To prevent excessive account liabilities, perpetual contracts often include a forced liquidation mechanism, ensuring contracts do not go into negative balances.
These contracts are widely utilized on cryptocurrency exchanges, providing traders with increased flexibility and diverse trading options.
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