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February 16, 2025
Perpetual Future: a complete guide for the cryptocurrency trade
The world of cryptocurrency has exploded in recent years, with new markets and commercial platforms that emerge every day. Although traditional financial markets have been well established for decades, the increase in cryptocurrencies such as Bitcoin and Ethereum has interrupted the status quo. An area in which the lines between traditional and digital resources are particularly blurred in the markets of future perpetual.
The perpetual future, also known as perpetual contracts or perpetual swaps, are a derivative type of tool that allows traders to buy or sell activities at any time within a specific period. These markets operate outside the traditional expiration dates, which may vary from 1 to 5 days and offer unique commercial opportunities for those who are familiar with cryptocurrency.
What is the perpetual future?
Future perpetui are contracts between two parts that have agreed to exchange cash flows in an activity at a fixed price per unit. These contracts generally involve options or future, but also include an settlement mechanism outside the traditional expiry dates. The key feature of the perpetual future is their ability to continuously trade without interruption.
Here’s how it works:
- Cash flow : a merchant stipulates a perpetual future contract by accepting with another part (for example, a corridor) to modify the cash flows in an activity at a fixed price per unit.
- Despite date : the perpetual future does not have an expiry date, which allows traders to liquidate their contracts outside the traditional markets.
- Liquidation : The merchant receives the liquidation value of the other part or exchanges it with another resource (for example, effective).
- Benefits/loss : the gain/loss of the operator is calculated on the basis of the difference between the initial price and the liquidation price.
types of perpetual futures
Future perpetui are available in different forms, which include:
- The perpetual future according to the options: they involve options of options that can be exercised at any time within a specific period.
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Commercial strategies for future perpetual
Perpetual Futures offer merchants different commercial strategies, including:
- Position sizing : traders can buy and sell future perpetual to obtain profits from prices in a specific period.
- Next trend : traders use technical indicators to identify trends and perform operations accordingly.
- Range Rank : traders try to trade within intervals or specific channels to benefit from price movements.
Key factors to consider
Before negotiating future perpetual, traders should consider the following factors:
- Risk management
: the perpetual future implies a high financial leverage, which makes risk management crucial to avoid significant losses.
- Volatility
: volatile activities and markets are more likely to experience jumps or price jumps.
- Liquidity : The perpetual future often lacks liquidity compared to traditional markets.
Advantages of the trade of future perpetual
Future perpetui offer several advantages for traders, including:
- Flexibility : traders can exchange with a variety of activities and deadlines without restrictions.
- Scalability : the future perpetual allow traders to exploit the great movements of prices with minimum capital requirements.
- Potential for high profits : With the correct management of risks, the perpetual future can offer high potential earnings.
Conclusion
The future perpetual represent a new border in the cryptocurrency trade, offering unique opportunities and commercial challenges. By understanding the mechanics of the perpetual future and selecting the correct strategies, traders can navigate with confidence in this complex market.