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Author: Admin | 2025-04-28
Would place a “long” bet on the cryptocurrency. The parties to a contract usually settle their differences and call it quits on the last day of the contract’s term.There is a subset of bitcoin futures known as perpetual contracts, despite the requirement that a futures contract have an end date. The unique feature of perpetual contracts is that they never end. They function identically to regular futures, without the expiration and settlement dates.A perpetual contract’s price tracks the current value of a coin and fluctuates quite similarly. The funding rate is the primary mechanism that allows for perpetual contracts, in which longs and shorts make ongoing payments to each other based on market conditions.Types of Crypto Futures ContractsCryptocurrency investors can choose from a number of different futures contracts. It’s important to choose the right futures exchange because most platforms don’t offer all of the stated varieties.Standard Futures ContractsRegular bitcoin futures feature the same characteristics as a regular futures contract, such as an expiration date and a settlement process. In December 2017, CME Group and CBOE, both based in Chicago, were the first futures trading exchanges to offer Bitcoin futures contracts. Until the BTC price broke its all-time high of $20,000 in 2020, this was one of many factors that drove the BTC price to a record high.As can be observed in its Bitcoin Futures Calendar, CME now offers multiple Bitcoin futures with varying maturity dates. At the time of contract termination, all payments are made in U.S. dollars. CBOE has
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