The Importance of Continuous Trading in Perpetual Futures

Continuous trading plays a pivotal role in perpetuating the efficiency and stability of perpetual futures markets. By facilitating uninterrupted buying and selling activities around the clock, perpetual futures contracts ensure constant liquidity and price discovery, crucial for traders to hedge risks and capitalize on market opportunities at any time. This perpetual nature eliminates the need for contract expiration, enabling seamless rollovers and uninterrupted exposure to underlying assets. Moreover, continuous trading fosters market transparency and fair pricing mechanisms, promoting trust and participation among investors. Thus, the significance of continuous trading in perpetual futures lies not only in sustaining market dynamics but also in fostering a robust ecosystem conducive to effective risk management and investment strategies.