How does terra perpetual futures work in the context of digital currencies?

3 answers

• Dec 18, 2021 · 3 years ago
  Terra perpetual futures are a type of derivative contract that allows traders to speculate on the future price of digital currencies without actually owning the underlying assets. These futures contracts have no expiration date, which means they can be held indefinitely. Traders can go long or short on the price of a digital currency, depending on their market outlook. This type of futures trading offers several benefits, including the ability to leverage positions, hedge against price volatility, and trade without the need for a digital currency wallet. It's important to note that trading futures involves risks, and it's recommended to do thorough research and understand the market before engaging in this type of trading.
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• Dec 18, 2021 · 3 years ago
  Terra perpetual futures work by using a funding rate mechanism to ensure that the futures price stays close to the spot price of the digital currency. The funding rate is periodically exchanged between long and short positions, which helps to balance the market and prevent price manipulation. This mechanism also incentivizes traders to take the opposite side of the majority of positions, which helps to maintain a fair and efficient market. Additionally, terra perpetual futures often have a funding rate that is based on the premium or discount of the futures price compared to the spot price, which further encourages convergence between the two prices.
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• Dec 18, 2021 · 3 years ago
  BYDFi, a digital currency exchange, offers terra perpetual futures trading as part of its platform. With BYDFi, traders can easily access and trade terra perpetual futures contracts for various digital currencies. The platform provides advanced trading features, such as leverage options and real-time market data, to enhance the trading experience. BYDFi also prioritizes the security of user funds and employs strict risk management measures to protect traders' assets. It's important to note that while BYDFi offers terra perpetual futures trading, there are also other reputable exchanges that provide similar services. Traders should choose an exchange that best suits their needs and preferences.
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