Derivatives & Risk

What is a perpetual futures contract in crypto?

A perpetual futures contract is a crypto derivative that lets traders take leveraged long or short positions on an asset's price with no expiry or settlement date. Unlike traditional futures, it never matures, and a funding rate mechanism keeps its price tethered to the spot market. For example, a trader expecting Bitcoin to fall can open a short perpetual and profit if the price drops, while paying or receiving funding along the way. Because they combine leverage with open-ended exposure, perpetuals carry amplified risk of rapid losses.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.