The History of Perpetual Derivatives
Perpetual derivatives have been in use since at least the early 1600's. Here's a quick recap of the three main perpetual derivatives and their history.
Topic
PERPETUAL OPTIONS
A collection of 6 issues
The Perpetual Option
The Perpetual Option is a funding-based derivative that can express an arbitrary number of payoff functions, including the one used by the Perpetual Future. This document provides a high-level overview of the Perpetual Option.
Everstrike Launches First Floating Strike Perpetual Options
Dubbed as “the perpetual future of options”, the floating strike perpetual option is a novel type of option that doesn’t expire, and that remains relevant in perpetuity. It was originally introduced in May 2021, by Paradigm researcher Dave White, in a paper titled Everlasting Options.
“Perpetual options give traders
Perpetual Options - The Greeks
The greeks of a perpetual option are determined by two factors: Its money-ness (ITM, OTM, ATM) and its funding period.
Perpetual Options - The Basket Analogy
A perpetual option can be thought of as a basket of European-style options, each of which has the same strike price but different expiration dates.
Why You Should NEVER Short Perpetual Futures
Shorting perpetual futures is TERRIBLE risk reward. Here's what you should do instead.