Perpetual Futures Trading

Asset

Perpetual futures trading, within cryptocurrency markets, represents a derivative contract mirroring an underlying asset’s price, yet lacking a traditional expiration date. This structure facilitates continuous positions, differing from conventional futures contracts requiring periodic roll-over. Funding rates, determined by the difference between perpetual contract prices and spot market prices, serve as periodic payments between long and short position holders, maintaining price alignment. Consequently, traders can maintain exposure without the constraints of expiry, influencing market dynamics and risk profiles.