Contract

Text

What is the difference between contract trading and perpetual contracts of OKEx?

Contract trading, with fixed expiration dates, stands distinct from perpetual contracts, which offer indefinite position holding and cash settlement.

Oct 28, 2024 at 11:28 am

1.Contract Trading

Contract trading involves the buying and selling of standardized contracts representing the underlying asset, such as a cryptocurrency. Each contract has specific terms, including its size, expiration date, and settlement price. Traders can take both long and short positions in these contracts, allowing them to potentially profit from both rising and falling markets.

2.Perpetual Contracts

Perpetual contracts are similar to traditional futures contracts but without a fixed expiration date. They allow traders to maintain positions indefinitely, rolling over to the next trading day at a funding rate. Perpetual contracts provide greater flexibility compared to traditional contracts, as traders can hold positions for extended periods without worrying about expiration dates.

3.Key Differences Between Contract Trading and Perpetual Contracts

Expiration Date: Contract trading has fixed expiration dates, while perpetual contracts do not.
Settlement: Contract trading involves the physical delivery of the underlying asset upon expiration, while perpetual contracts are settled in cash.
Funding Rate: Perpetual contracts have a daily funding rate that incentivises traders to maintain a balanced market.
Flexibility: Perpetual contracts offer greater flexibility, allowing traders to hold positions indefinitely.
Traded on different markets: Contract trading is found on Futures Market, while Perpetual contracts are found on Swap Market.
Higher Leverage: Usually perpetual contracts offer higher leverages than futures contracts.
Smaller Price Fluctuation: Perpetual contracts have smaller price fluctuation than futures contracts.

4.Which Type of Trading is Right for You?

The choice between contract trading and perpetual contracts depends on individual trading preferences and strategies.

Contract trading may be more suitable for traders who prefer fixed expiration dates and physical settlement of the underlying asset.

Perpetual contracts may be more appropriate for traders seeking greater flexibility, the ability to hold positions indefinitely, and exposure to a wider range of underlying assets.

Ultimately, it's crucial to consider your trading objectives, risk tolerance, and market knowledge before deciding on the most suitable trading option.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Fear & Greed Index

Trade Now

Biggest Gainers

LUNA

$0.0841

54.64%

Trade Now
SHOGGOTH

$0.1343

49.72%

Trade Now
DEGEN

$0.0254

43.84%

Trade Now
BULL

$0.0812

36.18%

Trade Now
SKBDI

$1.02

35.71%

Trade Now
CAT

$0.0...04924

28.76%

Trade Now

Latest Crypto News

WallitIQ (WLTQ): Investors Positioning For A 34,000% ROI As Dogecoin And Shiba Inu Prices Compete For Dominance
2024-11-15 10:15:01
Fetch.ai (FET) Lags Behind Other AI Coins, Raising Concerns About Its Ability to Maintain Its Position
2024-11-15 10:15:01
Qubetics Redefines Cross-Border Payments with Blockchain, Targeting $707,000 Investment Potential While Algorand and Cosmos Ecosystem Lead November 2024
2024-11-15 10:15:01
Bitcoin Eyes $100,000 as It Continues Its Bullish Uptrend, Inspired by the Notorious Internet Meme, Pepe Outshines Everyone
2024-11-15 10:15:01
Dogecoin Soars After President-Elect Donald Trump Announces the Creation of the Department of Government Efficiency (DOGE)
2024-11-15 08:15:02
PEPE the Meme Coin with a Frog Mascot Took the Crypto World by Storm
2024-11-15 10:15:01

Related knowledge

How to calculate Upbit contract rate

Nov 15,2024 at 04:47am

A Comprehensive Guide to Calculating Upbit Contract RatesUpbit, a leading South Korean cryptocurrency exchange, offers a comprehensive suite of trading options, including cryptocurrency spot trading, margin trading, and futures contracts trading. Futures contracts are financial instruments that allow traders to speculate on the future price of an asset,...

How long does it take for Upbit contract settlement

Nov 14,2024 at 10:10pm

How Long Does It Take for Upbit Contract Settlement?Upbit, a renowned South Korean cryptocurrency exchange, offers a diverse range of trading options, including spot trading and contract trading. Contract trading, also known as futures trading, allows traders to speculate on the future price movements of underlying assets without taking physical possess...

What is Upbit contract trading

Nov 14,2024 at 10:46pm

What is Upbit Contract Trading?Upbit is a South Korean cryptocurrency exchange that offers a wide range of trading options, including spot trading, margin trading, and contract trading. Contract trading, also known as futures trading, allows traders to speculate on the future price of a cryptocurrency without having to actually own the underlying asset....

What does Upbit contract trading mean

Nov 14,2024 at 10:22pm

What Does Upbit Contract Trading Mean?IntroductionUpbit, a leading South Korean cryptocurrency exchange, offers a range of trading options, including contract trading. Contract trading is a derivative instrument that allows traders to speculate on the price movements of underlying assets without owning them directly. This can provide opportunities for b...

How to read Upbit contract K-line

Nov 14,2024 at 02:44pm

How to Read Upbit Contract K-lineUpbit is a popular South Korean cryptocurrency exchange that offers a variety of trading options, including spot trading, margin trading, and contract trading. Contract trading is a type of futures trading that allows traders to speculate on the future price of a cryptocurrency without actually owning the underlying asse...

Tutorial on Upbit currency-based contracts

Nov 14,2024 at 06:30pm

Tutorial on Upbit Currency-Based ContractsUpbit is a well-known cryptocurrency exchange in South Korea that offers a variety of trading options, including currency-based contracts. These contracts are a type of derivative that allows traders to speculate on the price of an underlying asset, such as Bitcoin or Ethereum, without having to own the asset it...