How does Gate.io's perpetual futures trading work?

3 answers

• Dec 16, 2021 · 3 years ago
  Gate.io's perpetual futures trading is a type of derivative trading that allows traders to speculate on the price movement of cryptocurrencies without actually owning the underlying assets. It offers leverage, allowing traders to open larger positions with a smaller amount of capital. Traders can go long (buy) or short (sell) contracts based on their market predictions. The contracts have no expiration date, hence the term 'perpetual'. The trading system uses a funding mechanism to ensure the contract price closely tracks the spot price of the underlying asset. This mechanism involves the exchange transferring funds between long and short positions to maintain balance and prevent price deviation.
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• Dec 16, 2021 · 3 years ago
  Gate.io's perpetual futures trading is a popular feature among cryptocurrency traders. It provides an opportunity to profit from both rising and falling markets. The leverage offered allows traders to amplify their potential gains or losses. However, it's important to note that trading derivatives involves higher risks compared to spot trading. Traders should carefully manage their positions and use risk management tools to protect their capital.
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• Dec 16, 2021 · 3 years ago
  In perpetual futures trading, Gate.io acts as the intermediary between buyers and sellers. The exchange provides a platform where traders can enter into contracts with each other. Gate.io charges fees for each trade executed on the platform. The fees vary based on the trading volume and the user's VIP level. Traders can monitor their positions, account balance, and market data through the Gate.io trading interface. It's important to conduct thorough research and understand the trading system before engaging in perpetual futures trading on Gate.io or any other platform.
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