What are coin margined perpetual futures and how do they work?

3 answers

• slgdMar 02, 2021 · 5 years ago
  Coin margined perpetual futures are a type of financial derivative that allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. These futures contracts are settled in the same cryptocurrency that they are denominated in, which means that traders need to deposit and maintain a certain amount of the cryptocurrency as collateral. The contracts have no expiration date and can be held indefinitely, hence the term 'perpetual'. The value of the contract is determined by the price of the underlying cryptocurrency and is settled periodically based on a funding rate. This funding rate is used to balance the price difference between the futures contract and the spot market. Overall, coin margined perpetual futures provide traders with a way to profit from both rising and falling cryptocurrency prices, and they are commonly used for hedging and speculative purposes in the cryptocurrency market.
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• Lauritzen BrantleyMar 12, 2026 · 3 months ago
  Coin margined perpetual futures are a type of financial instrument that allows traders to leverage their positions in the cryptocurrency market. Unlike traditional futures contracts, which have an expiration date, perpetual futures contracts have no fixed settlement date. This means that traders can hold their positions for as long as they want, without worrying about the contract expiring. These contracts are settled in the same cryptocurrency that they are denominated in, and traders need to deposit a certain amount of the cryptocurrency as collateral. The value of the contract is determined by the price of the underlying cryptocurrency, and it is settled periodically based on a funding rate. The funding rate is used to balance the price difference between the futures contract and the spot market. Coin margined perpetual futures are popular among traders who want to take advantage of short-term price movements in the cryptocurrency market, as they provide the opportunity to profit from both rising and falling prices.
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• Upton McdowellJul 28, 2023 · 3 years ago
  Coin margined perpetual futures are a type of derivative product that allows traders to speculate on the price movements of cryptocurrencies. These futures contracts are settled in the same cryptocurrency that they are denominated in, and traders need to deposit and maintain a certain amount of the cryptocurrency as collateral. The contracts have no expiration date, which means that traders can hold their positions for as long as they want. The value of the contract is determined by the price of the underlying cryptocurrency, and it is settled periodically based on a funding rate. This funding rate is used to balance the price difference between the futures contract and the spot market. Coin margined perpetual futures provide traders with a way to profit from both rising and falling cryptocurrency prices, and they are commonly used for hedging and speculative purposes in the cryptocurrency market.
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