Short-term perpetual contract is a speculative strategy, whose action is to short the index, thus selling the spot and holding the position for a long time. This strategy requires investors to have the skills of highly forecasting the basic assets and carefully study and analyze the market trends. The purpose of short-term perpetual contract is to profit from the decline of the underlying asset price, so it is very suitable for the bearish market.
Although short-term permanent contracts can gain benefits, they also have risks. Once the market rises out of control, investors may suffer huge losses. However, investors who are overly optimistic or pessimistic may make wrong trading decisions and lead to losses. Therefore, before considering the short-term sustainable contract strategy, any investor must fully understand the market and investment varieties, and take effective risk control strategies.