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What does btc permanent contract mean?
The products in the wealth management market are very rich. Recently, some netizens reported seeing an asset called "btc perpetual contract". What does btc permanent contract mean?

What does btc permanent contract mean?

Btc is the abbreviation of Bitcoin, and perpetual contract is a special kind of futures. Ordinary futures have maturity date and delivery date, while perpetual contracts have no maturity date, which actually has the characteristics of spot. In fact, the price difference between the permanent contract and the relevant spot is also very small.

In order to ensure that there is almost no difference between the BTC permanent contract and the spot price, many exchanges have the following provisions:

1 At a certain moment, when the futures price is greater than and obviously deviates from the spot price, the bulls need to pay the short seller.

At a certain moment, when the futures price is less than and obviously deviates from the spot price, the empty party needs to pay to many parties.

The greater the deviation, the higher the payment rate.

Permanent contract is a concept corresponding to delivery contract. A delivery contract is a contract that must be delivered in kind or in cash at a certain time. Under normal circumstances, the contract price and spot price of delivery will be different, but when delivery approaches, the contract price and spot price will converge, which is the characteristic of delivery contract.