"Beginners Contract Trading Course" is a series of perpetual contract series popular sciences of Bitget. It provides multi-dimensional guides for contract users through graphic tutorials, comics, videos, etc. so that beginners can easily get started.
[Beginners Contract Trading Course] 002:Contract varieties and Advantages of perpetual contract
1.Contract varieties
There is two kinds of Digital currencies contract: Futures contract and Perpetual Contract
(1) Futures contract: Futures delivery refers to traders consummating the contract by transferring the ownership of the contract when the contract expires.
(2) Perpetual Contract: A Perpetual Contract is a derivative product that is similar to a traditional Futures Contract, It is also a virtual contract product settled with coins like BTC.
Investor can buy contract to be a long position holder and yield a profit if the digital currency’s price goes up. On the contract, Investors can sell contract to place short order to benefit when the price is dump.
Perpetual Contract has a few differing specifications. unlike the traditional form of futures, it doesn’t have an expiry date. So one can hold a position for as long as they like. The trading of perpetual contracts is based on an underlying Index Price. The Index Price consists of the average price of an asset through a Funding Cost mechanism.
2.Advantages
perpetual contract has no fixed delivery date, can hold a position for long time and more flexible as Futures contract has fixed delivery date and must to be settled at delivery date.
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