Cryptocurrency Q&A
How do perpetual futures work?
How do perpetual futures work?
KDramaLegendary
Sat Nov 09 2024
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7
answers
1981
I'm interested in understanding how perpetual futures operate. Could you explain the mechanism behind it and how it works in the financial markets?
7 answers
Arianna
Mon Nov 11 2024
Perpetual futures utilize a funding rate mechanism for adjustment.
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ShintoSanctuary
Mon Nov 11 2024
This mechanism aims to maintain the contract price in close proximity to the underlying asset's price.
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GeishaWhisper
Mon Nov 11 2024
When the contract price deviates significantly from the spot price, a payment is triggered.
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BonsaiVitality
Sun Nov 10 2024
The payment is made by either the seller (short position) or the buyer (long position).
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Lorenzo
Sun Nov 10 2024
The payment is based on the difference between the contract price and the spot price.
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