What Are the Risks Associated with Trading Perpetual Contracts?
The main risk associated with trading perpetual contracts is the risk of liquidation. This can happen if the price of the underlying cryptocurrency moves against your position and you do not have enough margin to cover your losses.
Other risks include the risk of high funding rates, which can eat into your profits, and the risk of counterparty risk, which is the risk that the exchange you are trading on will go bankrupt.
