What is Perpetual Trading?

Trading digital asset perpetuals involves engaging in perpetual futures contracts, which are a type of derivative product that does not have an expiration date. While these contracts do not have an expiration date, you are primarily betting on the short-term value of the digital asset. These contracts allow traders to speculate on the future price of a digital asset without owning the underlying asset.

In trading digital asset perpetuals, you take either a long or short position on a specific asset, such as Bitcoin or Ethereum. If you believe an asset is undervalued, you would take a long position by placing a limit or market order to buy the asset. If you believe an asset is overvalued, you would take a short position by placing a limit or market order to sell the asset. This can be confusing for novice traders because you don't need to own the asset before "selling" it in this form of trading.

Read about placing orders to learn how to trade digital asset perpetuals on Rails.