Perpetual contracts
Unlike dated futures, perpetual contracts have no fixed expiry. Funding payments help align contract prices with the underlying market.
A closer look at perpetual futures.
Understand leveraged products, funding payments and liquidation risk before considering derivatives.
Margin and leverage
Leverage increases exposure relative to margin and magnifies both gains and losses. Liquidation can occur when margin becomes insufficient.
Funding and risk
Funding rates can change. Trading fees, funding costs and fast price movements all affect a position.
Independent static demonstration · No financial services are connected.
How perpetual futures work
Contract exposure
A perpetual future is a derivative that tracks an underlying reference asset without a scheduled expiry. A long position benefits from upward price movement and a short position from downward movement, before fees and funding. Holding a contract is different from holding the underlying cryptocurrency.
Funding payments
Many perpetual markets use periodic funding payments between long and short positions. The direction and size depend on the venue’s methodology and market conditions. A positive funding rate commonly means longs pay shorts, but the actual rules and schedule must be checked for each product.
Margin and liquidation
Initial margin supports opening a position; maintenance margin determines the minimum required to keep it open. Falling below the relevant threshold can trigger liquidation. A stop order is not a guarantee against loss, especially when prices move rapidly or liquidity is limited.
Position planning
Before taking exposure, examine contract size, margin requirements, mark-price rules, fees and funding. Consider how much loss the position can create under an adverse move. This site provides no derivatives trading or order submission.
Key points at a glance
| Topic | What to understand |
|---|---|
| Spot | Exposure to the asset; no contract funding |
| Perpetual futures | Contract exposure; funding may apply |
| Leverage | Greater exposure relative to margin; greater loss sensitivity |
| Liquidation | A forced position closure under the venue’s margin rules |
Frequently asked questions
Do perpetual contracts expire?
They generally do not have a fixed expiry, although venues can delist products or change availability under their terms.
Is leverage shown as a recommendation?
No. Leverage can magnify losses. This educational page does not recommend a position or leverage level.
Are derivatives available here?
No. All product descriptions are informational and no live derivatives platform is connected.