-
Bitcoin $105,124.9946
1.16% - Ethereum
$3,239.5092
3.08% - XRP
$3.1303
0.98% - Tether USDt
$1.0004
0.05% - Solana
$240.1752
1.77% - BNB
$678.7406
0.98% - USDC
$1.0001
-0.01% - Dogecoin
$0.3320
0.19% - Cardano
$0.9626
0.72% - TRON
$0.2516
4.02% - Chainlink
$24.5594
1.41% - Avalanche
$34.3665
2.24% - Stellar
$0.4329
7.92% - Sui
$4.1339
7.06% - Hedera
$0.3186
1.79% - Toncoin
$4.7984
-1.49% - Shiba Inu
$0.0...01869
-0.11% - Litecoin
$129.4319
10.66% - Polkadot
$6.1356
4.93% - Hyperliquid
$27.1918
13.33% - UNUS SED LEO
$9.7716
-0.42% - Bitcoin Cash
$435.5188
3.79% - Bitget Token
$6.9496
2.02% - Uniswap
$12.0446
0.69% - Ethena USDe
$1.0014
0.03% - Pepe
$0.0...01303
-0.82% - NEAR Protocol
$4.6220
1.96% - MANTRA
$5.6391
21.90% - Dai
$1.0002
0.01% - OFFICIAL TRUMP
$26.6840
-5.87%
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.
- Czech National Bank Explores Expanding Investment Portfolio, Taking Cues From Norway's Bitcoin Exposure
- 2025-01-31 05:30:53
- Lightchain AI: The Rising Star of 2025 That's Making Crypto Millionaires Shift Away from XRP
- 2025-01-31 05:30:53
- Rexas Finance (RXS): A Promising New Investment for Cardano (ADA) Investors
- 2025-01-31 05:30:53
- Toshi Price Prediction: Can the Cat-Themed Meme Coin Continue Its Rise?
- 2025-01-31 05:30:53
- Litecoin (LTC) Price Surges by 15% on Jan. 30 as SEC Reviews Canary Capital's Spot LTC ETF Filing
- 2025-01-31 05:30:53
- Ethereum (ETH) Price Prediction 2025: Will It Rise or Lose Its Status?
- 2025-01-31 05:30:53
Related knowledge
What are the impacts of different contract leverage multiples?
Dec 16,2024 at 12:46pm
Impacts of Different Contract Leverage MultiplesLeverage, a tool leveraged in the financial realm, amplifies trading activities and enhances potential returns while simultaneously magnifying risks. Understanding the implications of varying leverage multiples is paramount for savvy traders. This article delves into the impacts of different contract lever...
Which is more suitable for novices, contract trading or margin trading on Huobi.com?
Dec 16,2024 at 12:44pm
Which is More Suitable for Novices: Contract Trading or Margin Trading on Huobi.com?As a novice trader venturing into the world of cryptocurrency trading, the choice between contract trading and margin trading on Huobi.com can be a daunting one. Both instruments offer unique advantages and drawbacks, making it crucial to understand their key differences...
What does the leverage ratio of contract trading mean?
Dec 16,2024 at 12:43pm
What does the leverage ratio of contract trading mean?IntroductionLeverage ratio is a key concept in contract trading, allowing traders to gain exposure to a larger position than their initial capital would allow. This can potentially amplify both profits and losses, making it crucial for traders to understand its implications.Understanding Leverage Rat...
What scams exist in leveraged trading of virtual currency contracts?
Dec 16,2024 at 12:42pm
What Scams Exist in Leveraged Trading of Virtual Currency Contracts?Leveraged trading of virtual currency contracts, also known as margin trading, can be a lucrative way to increase your profits. However, it is important to be aware of the various scams that exist in this market so that you can protect yourself from losing your money.Pump-and-dump scams...
What is 20x leverage on Bitcoin contracts?
Dec 16,2024 at 12:40pm
What is 20x Leverage on Bitcoin Contracts?IntroductionLeverage is a powerful tool in the world of trading that can magnify both profits and losses. However, it's essential to understand the risks involved before using leverage, especially when trading volatile assets like Bitcoin. In this comprehensive guide, we will delve into the concept of 20x levera...
What is the difference between Huobi’s margin trading and contract trading?
Dec 16,2024 at 12:39pm
Understanding the Distinctions between Huobi Margin Trading and Contract TradingIntroductionHuobi, a leading cryptocurrency exchange, offers diverse trading options to cater to traders' varying risk tolerance and investment goals. Among these options are Margin Trading and Contract Trading, each with distinct features and trading mechanisms. This compre...
What are the impacts of different contract leverage multiples?
Dec 16,2024 at 12:46pm
Impacts of Different Contract Leverage MultiplesLeverage, a tool leveraged in the financial realm, amplifies trading activities and enhances potential returns while simultaneously magnifying risks. Understanding the implications of varying leverage multiples is paramount for savvy traders. This article delves into the impacts of different contract lever...
Which is more suitable for novices, contract trading or margin trading on Huobi.com?
Dec 16,2024 at 12:44pm
Which is More Suitable for Novices: Contract Trading or Margin Trading on Huobi.com?As a novice trader venturing into the world of cryptocurrency trading, the choice between contract trading and margin trading on Huobi.com can be a daunting one. Both instruments offer unique advantages and drawbacks, making it crucial to understand their key differences...
What does the leverage ratio of contract trading mean?
Dec 16,2024 at 12:43pm
What does the leverage ratio of contract trading mean?IntroductionLeverage ratio is a key concept in contract trading, allowing traders to gain exposure to a larger position than their initial capital would allow. This can potentially amplify both profits and losses, making it crucial for traders to understand its implications.Understanding Leverage Rat...
What scams exist in leveraged trading of virtual currency contracts?
Dec 16,2024 at 12:42pm
What Scams Exist in Leveraged Trading of Virtual Currency Contracts?Leveraged trading of virtual currency contracts, also known as margin trading, can be a lucrative way to increase your profits. However, it is important to be aware of the various scams that exist in this market so that you can protect yourself from losing your money.Pump-and-dump scams...
What is 20x leverage on Bitcoin contracts?
Dec 16,2024 at 12:40pm
What is 20x Leverage on Bitcoin Contracts?IntroductionLeverage is a powerful tool in the world of trading that can magnify both profits and losses. However, it's essential to understand the risks involved before using leverage, especially when trading volatile assets like Bitcoin. In this comprehensive guide, we will delve into the concept of 20x levera...
What is the difference between Huobi’s margin trading and contract trading?
Dec 16,2024 at 12:39pm
Understanding the Distinctions between Huobi Margin Trading and Contract TradingIntroductionHuobi, a leading cryptocurrency exchange, offers diverse trading options to cater to traders' varying risk tolerance and investment goals. Among these options are Margin Trading and Contract Trading, each with distinct features and trading mechanisms. This compre...
See all articles
