How many types of currency contracts are there?

Cryptocurrency contracts are divided into four major types: perpetual contracts (no expiration date), quarterly contracts (with fixed expiry date), delivery contracts (forced liquidation on expiration date), options contracts (traders have the right to buy and sell the underlying assets s right). Different contract types are suitable for different trading strategies and risk tolerances.

Coin Circle Contract Type

Coin Circle Contract is a type of financial derivative that allows traders to speculate on the price of digital assets. Currently, there are four main types of currency contracts:

1. Perpetual Contract

Perpetual contract is a contract with no expiration date. Traders can open or close positions at any time during the contract holding period without considering delivery. The trading price of perpetual contracts is usually tied to the spot market, but is more volatile.

2. Quarterly Contract

A quarterly contract is a contract with a fixed expiry date. The expiration date is usually the last Friday at the end of the quarter. On the expiration date, the contract will be automatically delivered into the underlying digital asset. Quarterly contracts typically trade at less volatile prices than perpetual contracts and are closer to spot market prices.

3. Delivery Contract

The delivery contract is also a contract with a fixed expiration date. The due date is usually the last Friday of each month. Unlike quarterly contracts, delivery contracts will be forced to be liquidated on the expiration date and do not require manual delivery. Delivery contracts typically trade at prices very close to spot market prices.

4. Options Contract

An options contract is a contract that gives the trader rights but not obligations. Traders can choose to buy or sell the underlying digital asset at a specific time and at a specific price. Options contracts can be divided into call options (the right to buy) and puts (the right to sell).

In addition to these four main types, there are other less common contract types, such as inverse perpetual contracts and leveraged tokens. Traders should consider their risk tolerance, trading strategy and market environment when selecting a contract type.

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