-
Bitcoin $94,997.0469
0.10% - Ethereum
$1,810.0972
0.17% - Tether USDt
$1.0002
0.00% - XRP
$2.2038
-2.00% - BNB
$599.8371
-0.74% - Solana
$148.6233
0.62% - USDC
$1.0001
0.01% - Dogecoin
$0.1751
-0.32% - Cardano
$0.6900
-1.30% - TRON
$0.2469
1.39% - Sui
$3.4973
-2.78% - Chainlink
$14.6086
-0.17% - Avalanche
$21.0384
-3.12% - UNUS SED LEO
$9.1437
1.32% - Stellar
$0.2706
-3.13% - Toncoin
$3.1596
-2.15% - Shiba Inu
$0.0...01329
-1.03% - Hedera
$0.1828
-2.46% - Bitcoin Cash
$366.8112
0.62% - Hyperliquid
$19.8487
7.82% - Polkadot
$4.1041
-0.86% - Litecoin
$84.5496
-1.28% - Dai
$1.0001
0.00% - Monero
$280.3315
1.84% - Bitget Token
$4.3543
-0.78% - Ethena USDe
$1.0003
0.07% - Pi
$0.6085
4.44% - Pepe
$0.0...08920
0.03% - Aptos
$5.3889
-0.52% - Uniswap
$5.2541
-1.68%
What are the differences between various coin-based perpetual contracts?
Coin-based perpetual contracts offer flexible financial instruments for traders seeking exposure to cryptocurrencies, enabling them to engage in both hedging and speculative strategies, with customizable leverage and risk management tools.
Dec 03, 2024 at 01:41 am
Understanding the Differences between Coin-Based Perpetual Contracts
Coin-based perpetual contracts are financial instruments that track the price of a particular cryptocurrency. Unlike traditional futures contracts, they do not have an expiration date and can be held indefinitely. This makes them suitable for both hedging and speculative trading.
Here are the key differences between different types of coin-based perpetual contracts:
1. Underlying Asset:
Coin-based perpetual contracts are typically backed by a single cryptocurrency, such as Bitcoin or Ethereum. The price of the contract is directly linked to the spot price of the underlying asset.
2. Funding Rate:
Perpetual contracts employ a funding rate mechanism to ensure that their prices remain aligned with the spot market. The funding rate is paid periodically by traders with long positions to those with short positions, or vice versa.
3. Leverage:
Leverage allows traders to increase their potential profits and losses by borrowing funds from the exchange. But some exchanges offer variable leverage levels, which can change based on market conditions.
4. Fees:
Exchanges charge various fees for trading perpetual contracts, including maker and taker fees, funding fees, and withdrawal fees. It's important to compare fees and choose an exchange that offers competitive rates.
5. Order Types:
Perpetual contracts support various order types, such as limit orders, market orders, and stop orders. Limit orders allow traders to specify the desired price for executing their trades, while market orders are executed at the current market price.
6. Risk Management Tools:
Exchanges provide risk management tools such as stop-loss orders, take-profit orders, and auto-deleveraging mechanisms to help traders protect their capital.
7. Liquidity:
Liquidity refers to the ease with which an asset can be bought or sold. Exchanges with higher liquidity offer tighter spreads and lower slippage, which is the difference between the expected and executed price of a trade.
8. Trading Volume:
Trading volume indicates the total amount of contracts traded on an exchange. High trading volume typically indicates greater market interest and liquidity.
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.
- Matt Hougan Convinced a Skeptic to Buy Bitcoin by Asking What Would It Take?
- 2025-05-01 15:25:12
- Arctic Pablo Coin, Turbo, Brett, Fwog, Popcat, Bonk
- 2025-05-01 15:25:12
- Snowflake Square to Skyrocket: Arctic Pablo Coin Forecasted to Hit $0.1—Doginme and Cat in a Dog's World Battle for Spotlight
- 2025-05-01 15:20:12
- Florida's Crypto Renaissance: How Pi Coin Is Leading the Charge
- 2025-05-01 15:20:12
- The first Bitcoin (BTC) decentralized finance (DeFi) company to launch a user-friendly suite of products will “win the entire market”
- 2025-05-01 15:15:11
- Dogecoin (DOGE) Price Completes Bullish Rounded Bottom Pattern, Setting the Stage for a Breakout Rally
- 2025-05-01 15:15:11
Related knowledge
How to view the position record of Kraken contracts? Can detailed transaction history be exported?
May 01,2025 at 08:14am
When trading on Kraken, one of the essential aspects for users is to manage and review their position records and transaction histories effectively. This article will guide you through the process of viewing the position record of Kraken contracts and exporting detailed transaction history, ensuring you have all the necessary information at your fingert...
How to place a stop loss order in Kraken contracts? What are the precautions when setting?
May 01,2025 at 09:15am
Placing a stop loss order in Kraken contracts is an essential risk management tool for traders looking to limit potential losses. This article will guide you through the process of setting up a stop loss order on Kraken and discuss the precautions you should take when doing so. Understanding Stop Loss OrdersA stop loss order is an order placed with a br...
How to recharge funds in Kraken contracts? What cryptocurrencies and fiat channels are supported?
May 01,2025 at 08:14am
Recharging funds into Kraken contracts is a straightforward process that allows users to engage in various trading activities on the platform. Kraken, one of the leading cryptocurrency exchanges, supports a wide range of cryptocurrencies and fiat currencies for depositing funds. In this article, we will explore the detailed steps for recharging funds in...
How to open an account for Kraken contracts? What materials and verification steps are required?
May 01,2025 at 02:35pm
Opening an account for Kraken contracts involves a straightforward process, but it requires attention to detail to ensure you meet all the necessary requirements. Kraken, a well-established cryptocurrency exchange, offers a variety of trading options, including futures and options contracts. To start trading these contracts, you must first create an acc...
How to use the copy function of Binance contracts? Can proportional replication be set?
May 01,2025 at 08:14am
Using the copy function on Binance contracts allows users to replicate the trading strategies of experienced traders automatically. This feature can be particularly useful for those new to trading or those looking to diversify their trading approach without spending extensive time analyzing the market. In this article, we will explore how to use the cop...
What is the difference between the U-based and coin-based Binance contracts? How to choose?
May 01,2025 at 08:15am
The world of cryptocurrency trading offers various instruments for investors and traders to engage with the market. Among these, Binance, one of the leading cryptocurrency exchanges, provides two types of futures contracts: U-based and coin-based. Understanding the differences between these two contract types is crucial for making informed trading decis...
How to view the position record of Kraken contracts? Can detailed transaction history be exported?
May 01,2025 at 08:14am
When trading on Kraken, one of the essential aspects for users is to manage and review their position records and transaction histories effectively. This article will guide you through the process of viewing the position record of Kraken contracts and exporting detailed transaction history, ensuring you have all the necessary information at your fingert...
How to place a stop loss order in Kraken contracts? What are the precautions when setting?
May 01,2025 at 09:15am
Placing a stop loss order in Kraken contracts is an essential risk management tool for traders looking to limit potential losses. This article will guide you through the process of setting up a stop loss order on Kraken and discuss the precautions you should take when doing so. Understanding Stop Loss OrdersA stop loss order is an order placed with a br...
How to recharge funds in Kraken contracts? What cryptocurrencies and fiat channels are supported?
May 01,2025 at 08:14am
Recharging funds into Kraken contracts is a straightforward process that allows users to engage in various trading activities on the platform. Kraken, one of the leading cryptocurrency exchanges, supports a wide range of cryptocurrencies and fiat currencies for depositing funds. In this article, we will explore the detailed steps for recharging funds in...
How to open an account for Kraken contracts? What materials and verification steps are required?
May 01,2025 at 02:35pm
Opening an account for Kraken contracts involves a straightforward process, but it requires attention to detail to ensure you meet all the necessary requirements. Kraken, a well-established cryptocurrency exchange, offers a variety of trading options, including futures and options contracts. To start trading these contracts, you must first create an acc...
How to use the copy function of Binance contracts? Can proportional replication be set?
May 01,2025 at 08:14am
Using the copy function on Binance contracts allows users to replicate the trading strategies of experienced traders automatically. This feature can be particularly useful for those new to trading or those looking to diversify their trading approach without spending extensive time analyzing the market. In this article, we will explore how to use the cop...
What is the difference between the U-based and coin-based Binance contracts? How to choose?
May 01,2025 at 08:15am
The world of cryptocurrency trading offers various instruments for investors and traders to engage with the market. Among these, Binance, one of the leading cryptocurrency exchanges, provides two types of futures contracts: U-based and coin-based. Understanding the differences between these two contract types is crucial for making informed trading decis...
See all articles
