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Author: Admin | 2025-04-27
In cryptocurrency, perpetuals trading has become a popular way to speculate on price movements without actually owning the asset. This type of trading, centered on perpetual futures contracts, offers flexibility and potential for high returns by allowing traders to hold positions indefinitely. Below, we break down what perpetuals trading is, its history, and how to get started with it at Millionero.1. What Are Perpetual Futures Contracts?A futures contract is a financial agreement to buy or sell an asset at a set price on a future date. Perpetual futures, however, differ in that they have no expiration date. Traders can hold onto these contracts as long as they meet certain requirements, giving them complete control over when to exit.Think of it as an open-ended bet on an asset’s price—whether it’s Bitcoin or Ethereum—without ever having to hold the actual asset. This flexibility is a key reason perpetual trading has gained popularity among crypto traders.2. A Brief History of Perpetuals in CryptoThe concept of perpetual futures was initially theorized in the 1990s by Nobel laureate Robert Shiller, but it wasn’t until 2016 that BitMEX introduced the first crypto perpetual futures contract on Bitcoin named $XBTUSD. By enabling traders to speculate on assets like Bitcoin without owning them, perpetual futures quickly became a staple in crypto trading. Today, they’re widely available on exchanges like Millionero, allowing traders to capitalize on market volatility.3. Key Differences Between Perpetual, Traditional Futures, and Spot TradingWhile perpetuals and traditional futures share similarities, perpetuals trading differs significantly from both traditional futures and spot trading:Expiration Date:Perpetual Futures: No expiration date, so positions can remain open indefinitely.Traditional Futures: Set expiration date, requiring traders to settle or close positions by a specified date.Spot Trading: No contract involved; you directly buy or sell the asset at the current market price.Leverage:Perpetual and Traditional Futures: Both allow leverage, enabling traders to control larger positions with a smaller capital outlay.Spot Trading: Typically does not involve leverage; you pay for the full asset value upfront.Ownership:Perpetual and Traditional Futures: No ownership of the underlying asset. You’re speculating on price movements only.Spot Trading: You own the asset outright, making it available to sell, transfer, or hold.Funding Rate (unique to perpetual futures): A small fee exchanged between long and short positions every few hours to align contract prices with market prices. This fee mechanism doesn’t exist in traditional futures or spot trading.4. How the Funding Rate WorksThe funding rate is a critical part of perpetuals trading, helping to keep the contract price close to the actual market value:When the Contract Price is Higher: If the perpetual price trades above the spot price, those with “long” positions (betting the price will rise) pay a fee to those with “short” positions (betting
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