Published on December 11th, 2019 | by Guest


Perpetual Swaps vs Future Contracts! Why Delta exchange is the best place for perpetual swaps?

All those who are new comers in the crypto investment world but are curious to enhance their knowledge will find this article immensely valuable. As is obvious from the topic, this article seeks to enlighten about the differentiating factors between perpetual swaps and future contracts. The article’s second part, on other hand, brings forth convincing reasons and factors that make Delta Exchange one of the best places for trading perpetual swaps.

Keeping in mind the best interest of investors’ community, we’ve tried to address both these sections as comprehensively as possible. So without wasting any further time, let us get the ball rolling.

Before starting with first part of our article, it is important to know that futures contracts as well as perpetual swaps are popular derivative products. Both these derivative products are easily available for trading and investment on popular derivative exchanges like Bitmex, Deribit and Delta Exchange.

Future Contracts vs Perpetual swaps

Both future contracts and perpetual swaps (also known as perpetual contracts) are actually pretty similar to each other. However, both these derivative products are differentiated on the basis of very few differing specifications and factors.

Below we’ve explored these fundamental differentiations by individually looking into basic characteristics of both these popular derivative products.

Future Contracts

In the crypto investment world, Future contracts refers to a legal agreement specifying the buying and selling of cryptocurrencies at already decided price on a precise date in the future. This legal agreement is obviously facilitated and anchored by two counterparties (buyers and sellers) who are bonded by legal obligation to fulfill the terms and conditions of the contract upon expiration.

Trader’s have the option to take two positions in a future contract: long or short position.

The most important advantage that contract futures offers to buyers is that it helps them to hedge against the risk of extreme price violation that Bitcoin and other popular altcoins are subjected to.

Perpetual Swaps

Perpetual contract is pretty similar to future contract in every possible way but the only major difference is that it does not enforce any expiry date. This enables traders to hold down to their position for as long as they desire to do so.

Another unique characteristic about perpetual contract is its price is closely pegged to spot trading and thereby entails ease of trading for investors.

Delta Exchange – the Best Destination for Perpetual Swaps

Over the last one year or so perpetual swaps have caught investors’ fancy in a big way and emerging platforms like Delta Exchange have played a big role in this. Founded in 2018 by founders who have cut their teeth in some of the biggest financial institutions, Delta boosts several investor friendly features that have certainly helped in propelling perpetual swaps’ popularity towards northwards.

Below we’ve briefly described these features and thereby have laid out convincing reasons as to why Delta is one of the best destinations for trading perpetual swaps.

High liquidity: With unhindered supply of altcoins and Bitcoin all throughout the year, today Delta stands out as one of the most robust platforms for trading perpetual contracts. Not to mention that 13 altcoins that are currently available for trading on Delta are amongst the most sought after cryptocurrency assets in the crypto investment world.

Leverage trading: Delta gives traders the opportunity of investing more with less by offering as much as 20x leverage on all altcoins and maximum 100x leverage on Bitcoin. This is almost on par with other leading platforms and thereby has helped Delta enormously in securing significant traction in the investment community.

Ease of trading: Delta’s streamlined and simple trading terminal is enabling even the most novice and inexperienced investors to trade in a berserk speed. Not to mention the ‘mock trading’ feature has played a big role in this.

Stablecoin settlement: In a quest to protect investors from extreme market volatility, Delta offers stablecoin or USDC settlement future. Unlike traditional cryptocurrencies, stablecoin remain immune to price volatility as their price is pegged to more stable commodity like USD.

It is just as important to mention that today Delta is one of the few platforms to allow stablecoin-settled futures on Bitcoin and leading altcoins like ethereum futures trading or ripple etc.

In the end, all these features and Delta’s unwavering commitment towards them highlights its broader vision to become most liquid and trusted global cryptocurrency derivatives exchange that can ably serve both retail and institutional traders.

Investors’ growing faith in Delta has proven beyond doubt that its vision is steadily transforming into reality.

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