Join Our 1,000,000+ Community

Get Ember

more posts

October 13, 2021

What is a perpetual swap contract?

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?

Don't miss out on our latest posts

February 06, 2024

January Reward Stats

We're thrilled to announce the Ember community's mining & reward stats for the month of January!

February 06, 2024

Welcome to Ember!

Here's a quick tutorial on how to use Ember.

February 06, 2024

Ember Partnered with Stake | Earn 10,000 Sats

We are thrilled to announce that Ember has partnered with Stake.com! To kick things off, we're airdropping 10,000 Sats in Ember to anyone who signs up on Stake.com, makes a deposit and plays their Crash or Plinko games.

Download Ember