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Perpetuals
leveraged trading in perpetuity
Perpetual swaps are financial derivatives with a number of characteristics:
  1. 1.
    There is no expiry date to your position - This means you never have to worry about rolling your position
  2. 2.
    You can use leverage to trade - Perpetual swaps are margined allowing you to leverage your position.
  3. 3.
    Funding Rates - Every 24 hours the difference in swap price vs underlying is transferred between counterparties on a trade - ie If you are long swaps and the price is above the underlying, you pay the difference to the short over the course of 24 hours and vice versa. This ensures that perpetual prices closely follow spot markets.
The flexibility of perpetuals swaps and their ease of trading has made them the preferred method of leveraged trading in the crypto ecosystem and a great tool for building out other products. Perpetual swaps were first invented by the BitMEX exchange. We recommend reading the link below for a more in-depth explainer.
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