I am trying to understand how perpetual contracts operate. I'd like to know the mechanisms behind these contracts, how they are structured, and how they function in practical use.
7
answers
BlockchainBaron
Wed Mar 12 2025
They are designed to remain active indefinitely, allowing traders to maintain their positions for extended periods.
EmeraldPulse
Wed Mar 12 2025
A key feature of perpetual contracts is the implementation of a regular funding payment mechanism.
GeishaMelodious
Wed Mar 12 2025
A Perpetual Contract represents a financial derivative that operates without a predefined expiry or maturity date.
MoonlitCharm
Wed Mar 12 2025
This mechanism involves periodic transfers of funds between the counterparties to the perpetual contract.
Martino
Wed Mar 12 2025
Unlike traditional futures contracts, perpetual contracts do not terminate at a specific point in time.