Can Perpetual Swaps Be Used to Short a Cryptocurrency without Borrowing?

Yes, a perpetual swap is a contract that allows a trader to take a short position by selling the contract without needing to borrow the underlying asset. When a trader opens a short position, they are essentially betting that the price of the underlying asset will fall.

The profit or loss is determined by the difference between the entry and exit price of the contract, adjusted for funding payments.