Join Our 800,000+ Community
A perpetual swap contract is a derivative instrument. A derivative is a financial instrument who's value is tied to another asset or assets. For example, the DeFi index on Ember is a derivative instrument tied to the performance of the DeFi tokens that make up the basket. Derivatives can also be contracts between two or more parties.
Now back to perpetual swaps:
A perpetual swap is a contract between parties that allows them to buy or sell an asset of value in the future. Perpetual swaps have many advantages including:
Trading with leverage (margin)
Don’t need to own the asset to sell it (no custody needed, borrowing from counterparty if you sell an asset you don’t have - short position)
Positions can be kept open, forever (i.e. perpetually)
-Harsharn Singh, Investment Associate @ Ember Fund
Thank you for reading!
Don't forget to come into the app tomorrow to continue learning about crypto!
Enjoying Ember?
March 20, 2023
Two new portfolio tournaments have arrived! Check the roster for more details.
March 17, 2023
This is who the Ember community thinks will win the F1 Saudi Arabian Grand Prix and Barcelona vs Real Madrid match this weekend.
March 15, 2023
Two new portfolio tournaments have arrived! This time, we're bringing sports into the crypto world. Check the roster for more details.