Differentiate between a Traditional Futures Contract and a Perpetual Swap in Terms of Margin Requirements

Traditional futures contracts have a fixed expiration date and typically require a lower initial margin relative to the contract value, but margin calls are based on the mark-to-market daily settlement. Perpetual swaps, lacking an expiration date, often have higher leverage options but require margin to cover the funding rate payments and potential mark-to-market losses.

The core difference is the continuous nature of margin maintenance in perpetual swaps versus the fixed settlement of traditional futures.