Perpetual Contracts: A Flexible Derivative Trading Tool in Cryptocurrency Markets

Introduction and Operation of Perptual Futures

Perptual Futures are a type of encryption derivation with no delivery deadline, allowing investors to leverage and expand trading scale in a bidirectional market. This type of contract has no fixed expiration date, and investors can hold the contract continuously until they choose to close their position, making it suitable for short to medium-term market volatility arbitrage.

The core is the funding rate mechanism, which conducts bidirectional payments every 8 hours based on the difference between the contract price and the spot price, adjusting the price to be closer to the spot, ensuring that the market price is fair and reasonable.

The difference between Perptual Futures and futures contracts

Unlike futures contracts, Perptual Futures have no expiration date and can be held for a long time. The price of futures contracts may deviate from the spot price due to supply and demand, while Perptual Futures maintain price consistency through funding rates. In addition, Perptual Futures trading is more flexible, allowing positions to be adjusted at any time.

Gate Perptual Futures trading features

Gate offers Perptual Futures for hundreds of cryptocurrencies including BTC, ETH, SOL, DOGE, and more. The interface is simple and easy to use, supporting mobile operations. In terms of risk control, it is equipped with automatic position reduction and forced liquidation mechanisms to reasonably diversify risks.

Users can customize leverage multiples, set take-profit and stop-loss orders, and use the platform’s intelligent strategies such as grid trading, Martingale, and copy trading to gain more profit opportunities.

Practical Trading Process

After the user registers and completes KYC, deposits USDT or other margin, selects Perptual Futures trading, sets the buy/sell direction and leverage, and confirms the strategy, the system will automatically execute the trade. Users can view floating profits and losses in real-time on the position page and manage their positions flexibly.

Risk Notice and Recommendations

Perptual Futures come with high returns but also high risks. It is recommended that beginners use low leverage (such as 2 to 5 times), set stop-losses to avoid emotional trading, familiarize themselves with the settlement times of funding rates, and maintain sufficient margin to prevent being liquidated. They can first use simulated trading to get accustomed to the operational process.

summary

Perptual Futures provide flexible and diverse trading tools for the encryption market. Gate’s comprehensive support allows various investors to gradually learn and apply this strategy, achieving a balance between risk control and returns, making it a mainstream choice for encryption derivation trading.