Market Cap: $3.1447T -0.780%
Volume(24h): $124.2162B -1.070%
Fear & Greed Index:

35 - Fear

  • Market Cap: $3.1447T -0.780%
  • Volume(24h): $124.2162B -1.070%
  • Fear & Greed Index:
  • Market Cap: $3.1447T -0.780%
Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos
Top Cryptospedia

Select Language

Select Language

Select Currency

Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos

Do people in the currency circle generally play perpetual contracts

The popularity of perpetual contracts in the cryptocurrency market is evident in their significant contribution to trading volume on major exchanges like OKX, where they account for over 80% of daily transactions.

Oct 29, 2024 at 04:10 pm

Are Perpetual Contracts Popular in the Cryptocurrency Market?

Perpetual contracts are a popular type of derivative contract in the cryptocurrency market, allowing traders to speculate on the future price of a cryptocurrency without having to buy or sell the underlying asset. This flexibility and potential for leverage make perpetual contracts attractive to many traders.

Popularity in the Cryptocurrency Market

In the cryptocurrency market, perpetual contracts have gained significant traction due to several factors:

  1. Leverage: Perpetual contracts offer leverage, allowing traders to amplify their potential gains (or losses).
  2. No Expiration Date: Unlike futures contracts, perpetual contracts do not have an expiration date, providing traders with flexibility in holding their positions.
  3. 24/7 Trading: Perpetual contracts are traded on exchanges that operate 24/7, providing traders with ample opportunities to enter and exit positions.
  4. No Settlement Risk: Traders avoid the settlement risk associated with buying or selling the underlying cryptocurrency, as they are only exchanging the contract without actually acquiring the asset.

How Common Are Perpetual Contracts?

According to data from major cryptocurrency exchanges, perpetual contracts account for a significant portion of trading volume in the cryptocurrency market. For example, on OKX, the world's largest cryptocurrency exchange, perpetual contracts account for over 80% of the daily trading volume.

Top Perpetual Contract Trading Platforms

  1. OKX
  2. Binance
  3. Huobi
  4. Bybit
  5. Coinbase

Conclusion

Perpetual contracts are a widely used type of derivative contract in the cryptocurrency market, offering traders leverage, flexibility, and continuous trading opportunities. Their popularity stems from the unique benefits they provide, making them a suitable option for both experienced and novice traders.

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.

Related knowledge

What are the impacts of different contract leverage multiples?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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

User not found or password invalid

Your input is correct