Perpetual Trading

Perpetual trading is an advanced trading mode and also a form of derivative trading. It allows users to trade based on the price of cryptocurrencies without involving the actual delivery of token assets. BullNow's perpetual trading also adopts an order book model, providing a smooth experience comparable to CEX, while remaining decentralized and non-custodial.

The contract price is linked to the spot price of the underlying asset through funding rates. These rates adjust the incentive to trade either long or short by applying a positive or negative carry cost to a particular perpetual position. When the price of a perpetual contract exceeds the spot price, traders holding long positions (those speculating on price increases) are required to pay.