Futures & Derivatives

Perpetual contract (Perpetual) explained

Perpetual futures – perp

Quick definition: A perpetual contract is a type of futures contract with no expiry date, so you can hold the position as long as you like, provided it isn't liquidated.

It is the most popular derivatives product in crypto (pairs like BTCUSDT, ETHUSDT... on Binance Futures, Bybit, OKX, Hyperliquid).

Because there is no expiry, exchanges use a funding rate mechanism to keep the contract price close to the spot price.

Trading perpetual contracts lets you go Long, go Short and use leverage, but the risk is much higher than buying spot.

💡 Example

You go Long BTCUSDT perpetual in January and hold until June without rolling over, simply paying or receiving funding every 8 hours.

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Related terms

Futures (futures contracts)Futures are contracts to buy or sell an asset at a set price in the future. In crypto, futures let you go Long…Funding rateFunding rate is a periodic fee that Longs and Shorts pay each other on perpetual contracts, keeping the contra…Mark priceThe mark price is the price an exchange uses to calculate unrealized PnL and trigger liquidations. It is deriv…Spot tradingSpot means buying and selling actual coins at the current price: you pay and receive the coins in your wallet …

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Educational content for reference only, not financial advice. Leveraged trading carries the risk of losing your entire capital.