Coinbase-backed crypto derivatives exchange BLADE, which launched last September, plans to offer (starting in February) zero-fee trading for Bitcoin, Ether (ETH), XRP, Zcash (ZEC), and Monero (XMR) perpetual contracts.
What Are Perpetuals?
Here is how BLADE defines perpetuals:
"Perpetuals (aka perpetual swap contracts) are financial derivatives, similar to futures, that enable traders/investors/speculators/hedgers to easily long and short cryptocurrencies with leverage. They are named perpetuals because they never expire and they are classified as swaps because payments are 'swapped' between counterparties on a periodic basis. Perpetuals represent the price of a perpetual claim on an index (e.g. the BLADE ZEC/USDT index)...
"Trading perpetuals is analogous to trading the underlying asset/cryptocurrency, but with leverage and a simple and efficient mechanism to short."
According to BLADE, trading perpetuals offers two advantages over trading regular (i.e. expiring) futures:
"Since perpetuals never expire, traders never need to roll over their futures contracts from the front month to a further-out month"
"Perpetuals typically trade closer to spot because of periodic payments which close the gap (or basis) between perpetuals prices and underlying index prices" Read More...