What is Perpetual futures?
A derivative that tracks an asset with no expiry, held open by periodic funding payments.
Perpetuals are the most traded crypto instrument. You post margin and take a leveraged position; a funding rate paid between longs and shorts keeps the contract near spot.
Leverage cuts both ways and liquidations cascade: forced selling can push the price further, which is why large moves often overshoot.
Related terms
- Funding rateTrading
The periodic payment between long and short perpetual traders that keeps the contract near spot.
- LeverageTrading
Using borrowed exposure so a small price move produces a large gain or loss.
- LiquidationTrading
Forced closing of a leveraged position when its margin falls below the maintenance level.