The Strategic Advantages of No Expiry Date in Perpetual Futures
Advertising and Marketing / by Neha Pardhi / 89 views
The strategic advantages of no expiry date in perpetual futures lie in their unique structure, which offers traders continuous exposure to assets without the need for rolling contracts. This feature eliminates the administrative burden and costs associated with contract expiration and renewal. Perpetual futures also provide enhanced liquidity and flexibility, allowing traders to enter and exit positions more easily. The funding rate mechanism, which aligns the contract price with the spot price, further stabilizes the market and reduces the risk of large price discrepancies. Overall, perpetual futures offer a streamlined, cost-effective, and efficient tool for both hedging and speculative strategies, making them an attractive option in the derivatives market.
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