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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.

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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!

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