Cryptocurrency Q&A How do perpetual contracts work?

How do perpetual contracts work?

KpopHarmonySoul KpopHarmonySoul Mon Mar 10 2025 | 7 answers 1538
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. How do perpetual contracts work?

7 answers

BlockchainBaron BlockchainBaron Wed Mar 12 2025
They are designed to remain active indefinitely, allowing traders to maintain their positions for extended periods.

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EmeraldPulse EmeraldPulse Wed Mar 12 2025
A key feature of perpetual contracts is the implementation of a regular funding payment mechanism.

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GeishaMelodious GeishaMelodious Wed Mar 12 2025
A Perpetual Contract represents a financial derivative that operates without a predefined expiry or maturity date.

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MoonlitCharm MoonlitCharm Wed Mar 12 2025
This mechanism involves periodic transfers of funds between the counterparties to the perpetual contract.

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Martino Martino Wed Mar 12 2025
Unlike traditional futures contracts, perpetual contracts do not terminate at a specific point in time.

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