Perpetual swaps

On DerivaDEX, users are able to trade perpetual swaps with other users on a decentralized platform.

1. Place a Trade: Select a trading pair. Choose your order type—limit, or market.

2. Manage Risk: Monitor your margin fraction to avoid liquidation.

3. Monitor Funding Rates: Keep track of the funding rate changes, as these can impact your bottom line and change regularly.

Perpetual swaps on DerivaDEX

• No Rollover Costs: Traders avoid costs associated with rolling contracts as there is no expiration.

• Real-Time Price Tracking: Funding rates and advanced price feeds ensure that the swap price closely follows the index price.

Perpetual swaps vs. other derivatives

1. No Expiration: Unlike futures, perpetual swaps have no settlement date, allowing positions to be held indefinitely.

2. Funding Rates: Funding rates are periodically paid between long and short positions to anchor the swap price close to the underlying asset price. Traders must monitor these payments as they influence the profitability of holding positions. Funding rates are assessed every 8 hours on DerivaDEX.

3. Efficient Shorting: Enables traders to profit from downward price movements in a straightforward manner.

4. No Asset Custody: Since the underlying asset isn’t traded, there are no custody concerns.

For more info, check out this article on perpetual swaps