What is perpetual futures?
Also known as: Perps, Perpetual swaps
Definition
Perpetual futures are derivative contracts that track a crypto asset's price with no expiry date, allowing long or short positions with leverage.
Unlike traditional futures, perpetuals never settle. A periodic funding rate paid between longs and shorts keeps the contract price close to the spot price.
Perpetuals make it possible to profit from falling prices by going short, and to hedge long-term holdings during a downturn. They also make it possible to lose money quickly, because they are usually traded with leverage.
Availability depends on where you live. Many jurisdictions restrict crypto derivatives for retail investors.
Related terms
General education only. Not financial advice.