How to understand perpetual contracts in the cryptocurrency market?
Perpetual contracts in the cryptocurrency market can be understood as 'spot trading with high leverage margin'.
As long as you do not face liquidation, you can hold it indefinitely without the need for settlement.
Most platforms offer leverage between (0, 100] times; Binance offers a maximum leverage of 125 times, requiring a margin rate of 0.8% to open a position.
Funding fees are used to maintain a balance between long and short positions, with long and short users exchanging funding fees multiple times a day, which helps bring the contract price closer to the spot price, preventing it from deviating too much from the spot price.
The liquidation price is also anchored to the spot market price, meaning liquidation only occurs when the spot market price reaches your liquidation price, and is not affected by the order book price.
Recently, I plan to ambush a potential coin that is ready to surge; doubling is quite simple, and I am also preparing to find some potential coins to hold until the end of the year, expecting a growth space of over 10 times is not a problem, follow along to reap the rewards below 999
