What are the differences between standard futures and perpetual futures in the context of cryptocurrency trading?

1 answers

• Dec 17, 2021 · 3 years ago
  As an expert in the cryptocurrency trading industry, I can tell you that the main difference between standard futures and perpetual futures lies in their expiration dates. Standard futures contracts have a fixed expiration date, usually at the end of a specific month or quarter. On the other hand, perpetual futures contracts do not have an expiration date, allowing traders to hold their positions indefinitely. This makes perpetual futures more suitable for traders who want to take a long-term approach and avoid the hassle of rolling over their positions every month or quarter. However, it's important to note that perpetual futures often have funding rates that need to be paid or received periodically, which can affect the overall profitability of the position. So, while perpetual futures offer more flexibility, traders need to carefully consider the funding costs when deciding between standard futures and perpetual futures.
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