-
Bitcoin
$83,990.8918
2.24% -
Ethereum
$1,931.1942
3.14% -
Tether USDt
$1.0000
-0.03% -
XRP
$2.3463
2.23% -
BNB
$627.9377
4.73% -
Solana
$128.7847
2.41% -
USDC
$1.0000
0.02% -
Dogecoin
$0.1741
3.83% -
Cardano
$0.7199
2.74% -
TRON
$0.2206
4.04% -
Chainlink
$14.0844
6.11% -
Pi
$1.3346
-5.43% -
UNUS SED LEO
$9.8269
2.45% -
Toncoin
$3.4666
0.51% -
Stellar
$0.2733
4.05% -
Hedera
$0.1913
4.45% -
Avalanche
$18.8363
3.47% -
Shiba Inu
$0.0...01295
-0.80% -
Sui
$2.3720
6.88% -
Litecoin
$92.5982
2.98% -
MANTRA
$6.9888
3.59% -
Polkadot
$4.3868
1.93% -
Bitcoin Cash
$336.4532
0.97% -
Ethena USDe
$0.9997
0.00% -
Dai
$1.0000
-0.01% -
Bitget Token
$4.4470
1.75% -
Hyperliquid
$13.3411
3.56% -
Monero
$212.1617
1.33% -
Uniswap
$6.3224
3.67% -
Aptos
$5.3592
4.50%
What are the differences between various currency-based perpetual contracts?
Perpetual contracts, a type of derivative contract with no expiration date and underlying cryptocurrencies, vary in important aspects such as margin requirements, leverage ratios, and funding rates.
Oct 23, 2024 at 02:54 am

What are the Differences Between Various Currency-Based Perpetual Contracts?
Perpetual contracts are a type of derivative contract that allows traders to speculate on the future price of an asset. They are similar to futures contracts, but there are some key differences.
1. Underlying Asset
The underlying asset of a perpetual contract is a cryptocurrency. This can be any cryptocurrency, such as Bitcoin, Ethereum, or Litecoin.
2. Expiration Date
Perpetual contracts do not have an expiration date. This means that they can be held indefinitely.
3. Margin
Margin is a deposit that traders must make in order to open a perpetual contract position. The margin requirement varies depending on the exchange and the cryptocurrency being traded.
4. Leverage
Leverage is a way to increase the potential profits of a perpetual contract position. However, it also increases the risk of losses. The leverage ratio varies depending on the exchange and the cryptocurrency being traded.
5. Funding Rate
The funding rate is a fee that is paid by traders who are holding a perpetual contract position that is in the opposite direction of the market. The funding rate is designed to keep the price of the perpetual contract in line with the spot price of the underlying asset.
6. Trading Fees
Trading fees are a fee that is charged by exchanges for executing perpetual contract trades. The trading fee varies depending on the exchange and the cryptocurrency being traded.
7. Contract Size
The contract size is the number of units of the underlying asset that are represented by each perpetual contract. The contract size varies depending on the exchange and the cryptocurrency being traded.
8. Liquidity
Liquidity is a measure of how easy it is to buy or sell a perpetual contract. The liquidity of a perpetual contract depends on the volume of trading on the exchange.
9. Risk
Perpetual contracts are a risky investment. The price of cryptocurrencies can fluctuate rapidly, and traders can lose their entire investment.
10. Tax
The tax treatment of perpetual contracts varies depending on the jurisdiction in which the trader resides. In some jurisdictions, perpetual contracts are taxed as capital gains, while in other jurisdictions they are taxed as income.
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.
- ICOminer is leading the new wave of cloud mining
- 2025-03-18 07:10:57
- YMCrypto: The Best Free Cloud Mining Platform to Earn $5,000 Daily
- 2025-03-18 07:10:57
- XRP (XRP) Gains National Recognition After President Donald Trump Mentions the “Valuable Cryptocurrency”
- 2025-03-18 07:05:57
- Rexas Finance (RXS) Price Prediction: Rival Altcoin Targets a 7500% Mega Jump as XRP Aims for a 400% Rally Past $10
- 2025-03-18 07:05:57
- Converge Launches New Blockchain Targeting Retail and Institutional Investors
- 2025-03-18 07:05:57
- Global Crypto Exchange KuCoin Lists PAWS, Offering New Trading Pair (PAWS/USDT)
- 2025-03-18 07:05:57
Related knowledge

How does the insurance fund of Coinbase Contracts work?
Mar 17,2025 at 11:06pm
Key Points:Coinbase Contracts' insurance fund is designed to protect users from losses due to smart contract exploits or platform failures.The fund is not explicitly detailed in terms of size or composition, leading to some opacity.Contributions to the fund are likely derived from Coinbase's operational profits or a percentage of trading fees.The fund's...

What are the position modes of Coinbase Contracts? How to switch?
Mar 18,2025 at 01:12am
Key Points:Coinbase Contracts offers three primary position modes: Isolated Margin, Cross Margin, and Hedge Mode.Each mode carries different risk levels and impacts your trading strategy.Switching between modes depends on your current position and involves navigating the Coinbase Contracts interface. This process differs slightly depending on whether yo...

What cryptocurrency trading pairs does Coinbase Contracts support?
Mar 17,2025 at 09:24pm
Key Points:Coinbase Contracts currently only supports trading pairs involving Bitcoin (BTC) and USD Coin (USDC). This is a limited selection compared to other derivatives exchanges.The limited number of pairs reflects Coinbase's cautious approach to offering derivatives, prioritizing user safety and regulatory compliance.While more pairs may be added in...

How to create a new contract transaction on the Coinbase platform?
Mar 17,2025 at 08:43pm
Key Points:Coinbase doesn't directly support the creation of arbitrary smart contracts. It primarily focuses on buying, selling, and holding established cryptocurrencies.To interact with smart contracts, you'll need a compatible wallet and potentially a decentralized exchange (DEX).Understanding the specific smart contract's requirements (e.g., network,...

How to open and set up Coinbase Contracts?
Mar 18,2025 at 06:06am
Key Points:Coinbase Contracts is not a product offered by Coinbase. Coinbase primarily focuses on exchanges and custody solutions for established cryptocurrencies. There is no platform called "Coinbase Contracts" for trading derivatives.The term "Contracts" usually refers to derivatives trading, specifically futures and options, offered on other platfor...

How to set risk limits in OKX contracts?
Mar 17,2025 at 07:42pm
Key Points:Understanding OKX's risk management tools is crucial for safe contract trading.Setting appropriate risk limits involves defining position size, stop-loss orders, and take-profit orders.OKX offers several features to assist in managing risk, including margin level alerts and automated liquidation protection.Careful planning and adherence to a ...

How does the insurance fund of Coinbase Contracts work?
Mar 17,2025 at 11:06pm
Key Points:Coinbase Contracts' insurance fund is designed to protect users from losses due to smart contract exploits or platform failures.The fund is not explicitly detailed in terms of size or composition, leading to some opacity.Contributions to the fund are likely derived from Coinbase's operational profits or a percentage of trading fees.The fund's...

What are the position modes of Coinbase Contracts? How to switch?
Mar 18,2025 at 01:12am
Key Points:Coinbase Contracts offers three primary position modes: Isolated Margin, Cross Margin, and Hedge Mode.Each mode carries different risk levels and impacts your trading strategy.Switching between modes depends on your current position and involves navigating the Coinbase Contracts interface. This process differs slightly depending on whether yo...

What cryptocurrency trading pairs does Coinbase Contracts support?
Mar 17,2025 at 09:24pm
Key Points:Coinbase Contracts currently only supports trading pairs involving Bitcoin (BTC) and USD Coin (USDC). This is a limited selection compared to other derivatives exchanges.The limited number of pairs reflects Coinbase's cautious approach to offering derivatives, prioritizing user safety and regulatory compliance.While more pairs may be added in...

How to create a new contract transaction on the Coinbase platform?
Mar 17,2025 at 08:43pm
Key Points:Coinbase doesn't directly support the creation of arbitrary smart contracts. It primarily focuses on buying, selling, and holding established cryptocurrencies.To interact with smart contracts, you'll need a compatible wallet and potentially a decentralized exchange (DEX).Understanding the specific smart contract's requirements (e.g., network,...

How to open and set up Coinbase Contracts?
Mar 18,2025 at 06:06am
Key Points:Coinbase Contracts is not a product offered by Coinbase. Coinbase primarily focuses on exchanges and custody solutions for established cryptocurrencies. There is no platform called "Coinbase Contracts" for trading derivatives.The term "Contracts" usually refers to derivatives trading, specifically futures and options, offered on other platfor...

How to set risk limits in OKX contracts?
Mar 17,2025 at 07:42pm
Key Points:Understanding OKX's risk management tools is crucial for safe contract trading.Setting appropriate risk limits involves defining position size, stop-loss orders, and take-profit orders.OKX offers several features to assist in managing risk, including margin level alerts and automated liquidation protection.Careful planning and adherence to a ...
See all articles
