I'm trying to understand the distinction between a contract, which has a fixed term and specific obligations, and a perpetual, which seems to suggest an arrangement that is ongoing and potentially unlimited. Could someone clarify the main differences between these two?
6
answers
charlotte_bailey_doctor
Sat Mar 08 2025
A perpetual future contract, often referred to as perps, is a crypto derivative asset with unique characteristics.
mia_rose_painter
Sat Mar 08 2025
It shares similarities with traditional futures contracts but includes some notable differences.
SeoulStyle
Sat Mar 08 2025
One of the primary distinctions is the absence of an expiration date in perpetual contracts.
MysticStar
Fri Mar 07 2025
Regular futures contracts must be settled on a specified expiration date, limiting their strategic flexibility.
GinsengBoost
Fri Mar 07 2025
In contrast, perps do not have this constraint, providing traders with more options and potential strategies.