Perpetual Inverse Swap
Perpetual Futures, also known as Perpetual Futures, are a type of financial instrument that is commonly used in trading. They are a form of derivative contract that allows traders to speculate on the price movements of an underlying asset without actually owning the asset itself.
One key feature of Perpetual Futures is that they do not have an expiration date. Unlike traditional futures contracts, which have a set expiration date, Perpetual Futures can be held indefinitely. This makes them particularly attractive to traders who want to maintain a long-term position in a particular asset.
Another important characteristic of Perpetual Futures is that they are designed to mimic the price of the underlying asset. This is achieved through a mechanism known as a funding rate. The funding rate is a periodic payment that is made between long and short positions in the contract. It helps to ensure that the price of the Perpetual Futures closely tracks the price of the underlying asset.
Perpetual Futures are traded on various cryptocurrency exchanges and are particularly popular in the world of digital currencies. They offer traders the opportunity to profit from both rising and falling prices, as well as the ability to use leverage to amplify their trading positions.
In conclusion, Perpetual Futures, also referred to as Perpetual Futures, are a type of financial instrument that allows traders to speculate on the price movements of an underlying asset without owning the asset itself. They are characterized by their lack of expiration date and their ability to closely track the price of the underlying asset. These instruments are commonly traded on cryptocurrency exchanges and offer traders the opportunity to profit from both rising and falling prices.