What are the different types of future contracts in the cryptocurrency market?
SchadenfreudeDec 16, 2021 · 3 years ago1 answers
Can you explain the various types of future contracts available in the cryptocurrency market? I'm interested in understanding the differences between them and how they work.
1 answers
- Dec 16, 2021 · 3 years agoIn the cryptocurrency market, there are several types of future contracts available. The most common ones include perpetual contracts, quarterly futures, and monthly futures. Perpetual contracts are designed to track the spot price of the underlying asset and have no expiry date. They are popular among traders who want to trade cryptocurrencies with leverage. Quarterly futures have fixed expiry dates every three months, while monthly futures expire at the end of each month. These contracts allow traders to speculate on the future price of cryptocurrencies without actually owning the assets. It's important to note that different exchanges may offer different types of future contracts, so it's advisable to research and compare the offerings of various platforms before making a decision. Remember to consider your risk tolerance and trading strategy when choosing the type of future contract to trade.
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