Fulcrom Finance
  • About Fulcrom
    • Fulcrom Finance
    • What is perpetual trading
    • Spread
    • Slippage
    • Fees
    • Revenue Share
    • Liquidation
    • Tokenomics
    • Roadmap
  • Core Modules
    • Trading Module
      • Trading Module Features
      • Trade Lifecycle
    • Fulcrom Liquidity Pool (FLP)
    • Liquidation Engine
    • Staking Module
      • $FLP
      • $FUL
      • $esFUL
      • Boost Points
      • Vesting $esFUL
      • Staking Parameters
  • Other Features
    • Referral Program
      • How to apply referral code?
      • How to generate my referral code?
      • How to claim my rebates?
      • How to check my membership tier and earnings?
      • FAQ
      • Terms of Use
    • Trade Square
    • Circuit Breaker
    • Notifications
      • How to start receiving notifications on Fulcrom?
      • How to start receiving notifications on Telegram?
      • How does the liquidation warning notification work?
    • Take Profit & Stop Loss Orders
      • How to set Take Profit/Stop Loss Orders when creating new positions?
      • How to set Take Profit/Stop Loss Orders after opening positions?
      • How to view the existing Take Profit/Stop Loss Orders?
    • Trading Competition (Cronos)
      • Aug 2023
      • Jun 2023
    • zkMania (zkSync Era)
      • zkMania Season 1
      • zkMania Season 2
    • croMania (Cronos Exclusive)
    • zkEVM Frenzy (Cronos zkEVM)
    • Fulcrom Mayhem
  • Additional
    • Get Started on Cronos zkEVM
      • Bridge Asset via Official Bridge
        • How to deposit CRO for zkCRO
        • How to deposit ETH for vETH
        • How to deposit USDC for vUSD
        • How to deposit USDT for vUSD
        • How to deposit DAI for vUSD
      • Swap via H2 Finance
    • FAQ
    • Team
    • Team Wallets
    • Socials and Partnerships
    • Smart Contracts
    • Supported Tokens
    • Security and Audits
    • RPC
    • Cronos Labs Incubation
    • Risk Disclosures
    • Usage Disclaimer
    • Terms of Use
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  1. About Fulcrom

What is perpetual trading

Introduction

Perpetual contracts have given the web3 space a much needed instrument to take directional bets and execute hedges in a seamless manner.

A perpetual contract is a derivative product that is similar to a futures contract but has no expiration date. What’s so significant about this versus traditional spot markets or futures can be broken down to 3 main things:

  1. Capital Efficiency via Leverage: The advantage of trading a perpetual contract over a spot contract is that perpetuals offer the trader the ability to trade on margin: Rather than having to fund the full cost of the trade (eg. 10 ETH) , the trader has the option to put down only part of the notional in margin (eg. 1 ETH), opening up capital to be allocated elsewhere

  2. No Requirement to hold Underlying Assets: A perpetual future is a derivative, which means that while the profits or losses of the trade depend on the price of the underlying - like ETH for example, there is no real need to own ETH in order to trade it. As long as there is sufficient collateral provided and a price feed, a perpetual contract can be traded for almost any token.

  3. No Physical Settlement of Underlying Assets: Trades can be held with leverage in perpetuity as long as the trader has sufficient collateral to pay for ongoing fees. There is no physical settlement of the underlying - for example, ETH, as there is no expiration date. This makes trading perpetuals much easier as when a trade is closed, it can be settled straight in USDC on your account, rather than having to deal with multiple tokens or selling the futures before they expire.

All users can leverage their position up to 25x, and you can unlock 100x leverage trading with 300 FLP staked on Fulcrom.

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Last updated 9 months ago