Do perpetual contracts expire?

BTCC is a leading cryptocurrency exchange that offers a wide range of services to its clients. Among its offerings are perpetual contracts, which allow traders to speculate on the price movements of various cryptocurrencies without having to worry about expiration dates. BTCC's perpetual contracts feature high leverage and a robust funding fee mechanism, making them an attractive option for experienced traders.

Perpetual contracts are financial instruments that do not possess an expiration date. This unique feature allows for continuous trading without the need for traders to roll over their positions to a new contract period. This characteristic sets perpetual contracts apart from traditional futures contracts, which have a predefined expiry date.

One of the most notable aspects of perpetual contracts is the high leverage they offer. Leverage allows traders to increase their market exposure without having to invest a significant amount of capital. While this can lead to amplified profits, it also means that potential losses can be magnified. Therefore, traders need to be cautious and manage their risk effectively when trading perpetual contracts.

Another crucial aspect of perpetual contracts is the funding fee mechanism. This fee is designed to align the perpetual contract price with the underlying spot price. If the perpetual contract price diverges from the spot price, funding fees are incurred by traders on the side of the market that is deemed to be in a less favorable position. These fees are paid periodically and help to maintain the equilibrium between the perpetual contract and spot prices.

In addition to perpetual contracts, BTCC also provides a comprehensive suite of other services. These include spot trading, where traders can buy and sell cryptocurrencies at current market prices, and futures trading, which allows traders to speculate on the future price movements of cryptocurrencies. BTCC also offers a secure wallet service, where users can store their cryptocurrencies safely and access them anytime, anywhere.