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Perpetual futures make sense for crypto because it has no physical presence and arguably no real uses beyond speculation. For commodities, for most of which fin
by polygamous_bat 3y ago
Perpetual futures make sense for crypto because it has no physical presence and arguably no real uses beyond speculation. For commodities, for most of which finance and more specifically futures conrracts are really a secondary tool to smoothen the real world use cases, expiry and delivery etc. is a feature and not a bug.
- vgatherps 3y agoIndex futures are among the most liquid and highly traded instruments and have no natural expiries, a perpetual might make sense. There is a direct correspondence between the rates component of the index futures and all other naturally expiring instruments (options, bonds, commodity futures) so there’s an angle of “yet another weird rates product everyone has to care about” if you add perps.
- saurik 3y agoI might have thought that, but the article says they were invented by actual real-world metal miners to solve a problem on the Chinese Gold and Silver Exchange.