Perpetual Futures Contracts as a Tool for Hedging Risks

WhiteBIT
Published 27 October 2022
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Perpetual Futures Contracts as a Tool for Hedging Risks

Content

There is a perpetual futures functionality available on our platform. We offer the USDⓈ-M futures contract and the BTC-PERP trading pair. Now, SOL-PERP, ETH-PERP, XRP-PERP, and ADA-PERP trading pairs have also become available.

Perpetual futures are an excellent tool for risk management, increasing income with leverage, and much more. Read further for details!

What are perpetual futures contracts?

Cryptocurrency perpetual contract trading is a popular form of futures trading. A characteristic feature of such contracts is the absence of the contract’s expiration date. Contracts stay very close to the spot price due to the funding mechanism. The funding principle lies in the ability of traders to make or receive payments depending on their open positions at a specific time. A trader with a long position and a positive rate makes a payout to a trader with a short position and vice versa.

Benefits of trading futures

Futures trading has a large fanbase. Here are some reasons why futures trading is so popular among crypto enthusiasts:

  • fees for trading futures are lower if compared to the fees in the spot market;
  • the leverage enables the users to get much more profit;
  • futures trading is a good way to manage risks (hedging) and secure the trading portfolio;
  • this type of trading allows earning on any market movement, even when it falls.

Futures trading on WhiteBIT

Our platform offers favorable conditions for successful futures trading, and here’s why:

✔️ we offer the lowest fees on the market;

✔️ our platform is optimized for a large number of transactions;

✔️ we have enough liquidity pool to work with the biggest traders;

✔️ our exchange allows one to use up to 20x leverage.

Trade futures and use all available growth opportunities!

WhiteBIT Team