Perpetual Futures
Crypto derivative contracts that let you bet on price movements without an expiration date.
Explained Simply
Perpetual futures (perps) are the most traded crypto derivative. Unlike traditional futures that expire on a specific date, perps have no expiry. They use a funding rate mechanism to keep the contract price close to the spot price. When the funding rate is positive, longs pay shorts; when negative, shorts pay longs. Perps allow both long (bullish) and short (bearish) bets with leverage. They are popular on exchanges like Binance, Bybit, and dYdX. High risk — most traders lose money.
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