-
Bitcoin $104,022.5677
-4.30% - Ethereum
$2,560.7743
-7.87% - Tether USDt
$1.0004
0.04% - XRP
$2.1470
-5.46% - BNB
$646.1664
-3.28% - Solana
$147.0016
-8.73% - USDC
$0.9994
-0.04% - Dogecoin
$0.1750
-9.60% - TRON
$0.2700
-3.25% - Cardano
$0.6414
-8.23% - Hyperliquid
$39.4486
-4.86% - Sui
$3.0438
-10.34% - Chainlink
$13.5822
-8.85% - Avalanche
$19.5525
-9.42% - Bitcoin Cash
$413.5591
-3.64% - UNUS SED LEO
$8.8888
-2.41% - Stellar
$0.2627
-5.17% - Toncoin
$3.0199
-6.72% - Shiba Inu
$0.0...01179
-9.16% - Hedera
$0.1587
-8.29% - Litecoin
$84.1345
-8.30% - Polkadot
$3.8305
-8.72% - Ethena USDe
$1.0003
-0.03% - Monero
$313.6654
-5.31% - Dai
$0.9998
0.00% - Bitget Token
$4.5184
-5.30% - Pepe
$0.0...01093
-12.30% - Uniswap
$7.2292
-11.78% - Aave
$283.6353
-7.06% - Pi
$0.5322
-15.94%
What is the difference between coin-coin contract and perpetual contract?
Coin-coin contracts and perpetual contracts offer distinct trading characteristics, with coin-coin contracts being more straightforward and offering lower risk, while perpetual contracts provide higher leverage for potential profits or losses.
Oct 22, 2024 at 05:41 am
Understanding the Differences Between Coin-Coin and Perpetual Contracts
In the realm of cryptocurrency trading, there are various types of contracts available to traders. Among them, coin-coin contracts and perpetual contracts stand out with unique characteristics and differences.
1. Definition
- Coin-coin contract: A contract that allows traders to exchange one cryptocurrency directly for another, without the need for a fiat currency intermediary.
- Perpetual contract: A type of derivative contract that offers leveraged exposure to the price of an underlying cryptocurrency, without an expiration date.
2. Underlying Asset
- Coin-coin contract: The underlying asset is a specific cryptocurrency pair, e.g., BTC/ETH.
- Perpetual contract: The underlying asset is the price of a single cryptocurrency, e.g., BTC.
3. Settlement
- Coin-coin contract: Settles in the underlying cryptocurrencies. The buyer receives the purchased cryptocurrency, while the seller receives the sold cryptocurrency.
- Perpetual contract: Settles in the currency of the exchange. Traders pay or receive the difference between the entry price and the settlement price in the contract currency.
4. Leverage
- Coin-coin contract: Typically offers lower leverage compared to perpetual contracts.
- Perpetual contract: Offers higher leverage, allowing traders to increase their potential profits (and losses).
5. Margin
- Coin-coin contract: Requires margin in both the base and quote currencies.
- Perpetual contract: Requires margin only in the contract currency.
6. Funding Rate
- Coin-coin contract: No funding rate.
- Perpetual contract: Has a funding rate that helps to keep the contract price closely aligned with the spot market price.
7. Trading Fee
- Coin-coin contract: Typically has lower trading fees compared to perpetual contracts.
- Perpetual contract: May have higher trading fees due to the higher leverage offered.
Conclusion
Coin-coin contracts and perpetual contracts offer distinct advantages and cater to different trading strategies. While coin-coin contracts are more straightforward and offer less risk, perpetual contracts provide higher leverage for potential profits (or losses) and flexibility for traders seeking leveraged exposure to cryptocurrency prices. The choice between the two will depend on the trader's risk tolerance, trading objectives, and preferred trading mechanisms.
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.
- AI Assistant Platform Angel Twin Will Launch Its Utility Token $ANGL on June 18
- 2025-06-13 09:00:12
- Breakthrough technology solution enables brands to build custom credit card products within their ecosystems without relinquishing their customers to legacy banks
- 2025-06-13 09:00:12
- DDC Enterprise Ltd. increased its bitcoin holdings by purchasing an additional 38 coins this week
- 2025-06-13 08:55:12
- Shiba Inu (SHIB) Navigates a Turbulent Market Thursday with Significant on-Chain Developments
- 2025-06-13 08:55:12
- Coinbase announces a Bitcoin-backed credit card and CFTC-compliant perpetual futures for US customers
- 2025-06-13 08:50:11
- XRP price prediction: Can ETF hype drive XRP to $27?
- 2025-06-13 08:50:11
Related knowledge
How to set the default leverage for CoinEx contracts?
Jun 12,2025 at 06:35pm
Understanding the Importance of Default Leverage in CoinEx ContractsSetting a default leverage on CoinEx contracts is crucial for traders who frequently engage in leveraged trading. This feature allows users to predefine the leverage level that will be automatically applied when opening new positions, eliminating the need to manually adjust it each time...
What are the tiered margin rules for CoinEx contracts?
Jun 11,2025 at 04:35pm
What are the Tiered Margin Rules for CoinEx Contracts?CoinEx, a well-known cryptocurrency exchange, offers a variety of derivative products, including futures contracts. One key aspect that traders must understand before engaging in leveraged trading is the tiered margin system. This system helps manage risk by adjusting the required maintenance margin ...
How to participate in simulated trading of CoinEx contracts?
Jun 12,2025 at 04:57pm
What is CoinEx Contract Simulated Trading?CoinEx offers a simulated trading environment for its contract trading platform, allowing users to experience futures trading without risking real funds. Simulated trading provides a realistic market scenario where traders can test strategies, understand the interface, and gain confidence before engaging in live...
How to use the position consolidation function for CoinEx contracts?
Jun 12,2025 at 11:49pm
What is Position Consolidation in CoinEx Contracts?Position consolidation is a feature within the CoinEx Futures trading platform that allows traders to merge multiple open positions of the same trading pair into a single position. This function simplifies portfolio management by reducing complexity and helping traders better monitor their exposure. For...
What is the minimum trading unit for CoinEx contracts?
Jun 12,2025 at 02:56pm
What is the Minimum Trading Unit for CoinEx Contracts?When engaging in contract trading on CoinEx, understanding the minimum trading unit is essential for traders, especially those who are just starting or managing smaller positions. The minimum trading unit refers to the smallest amount of a cryptocurrency contract that can be traded on the platform. T...
What is the maximum leverage ratio for CoinEx contracts?
Jun 12,2025 at 09:21pm
Understanding Leverage in Cryptocurrency Futures TradingIn the realm of cryptocurrency futures trading, leverage refers to the use of borrowed capital to increase one’s trading position beyond what would be available from their cash balance alone. Platforms like CoinEx Futures offer leveraged trading to allow users to amplify potential profits — and als...
How to set the default leverage for CoinEx contracts?
Jun 12,2025 at 06:35pm
Understanding the Importance of Default Leverage in CoinEx ContractsSetting a default leverage on CoinEx contracts is crucial for traders who frequently engage in leveraged trading. This feature allows users to predefine the leverage level that will be automatically applied when opening new positions, eliminating the need to manually adjust it each time...
What are the tiered margin rules for CoinEx contracts?
Jun 11,2025 at 04:35pm
What are the Tiered Margin Rules for CoinEx Contracts?CoinEx, a well-known cryptocurrency exchange, offers a variety of derivative products, including futures contracts. One key aspect that traders must understand before engaging in leveraged trading is the tiered margin system. This system helps manage risk by adjusting the required maintenance margin ...
How to participate in simulated trading of CoinEx contracts?
Jun 12,2025 at 04:57pm
What is CoinEx Contract Simulated Trading?CoinEx offers a simulated trading environment for its contract trading platform, allowing users to experience futures trading without risking real funds. Simulated trading provides a realistic market scenario where traders can test strategies, understand the interface, and gain confidence before engaging in live...
How to use the position consolidation function for CoinEx contracts?
Jun 12,2025 at 11:49pm
What is Position Consolidation in CoinEx Contracts?Position consolidation is a feature within the CoinEx Futures trading platform that allows traders to merge multiple open positions of the same trading pair into a single position. This function simplifies portfolio management by reducing complexity and helping traders better monitor their exposure. For...
What is the minimum trading unit for CoinEx contracts?
Jun 12,2025 at 02:56pm
What is the Minimum Trading Unit for CoinEx Contracts?When engaging in contract trading on CoinEx, understanding the minimum trading unit is essential for traders, especially those who are just starting or managing smaller positions. The minimum trading unit refers to the smallest amount of a cryptocurrency contract that can be traded on the platform. T...
What is the maximum leverage ratio for CoinEx contracts?
Jun 12,2025 at 09:21pm
Understanding Leverage in Cryptocurrency Futures TradingIn the realm of cryptocurrency futures trading, leverage refers to the use of borrowed capital to increase one’s trading position beyond what would be available from their cash balance alone. Platforms like CoinEx Futures offer leveraged trading to allow users to amplify potential profits — and als...
See all articles
