Skip to main content
Learn

Do Perpetual Swaps Use Cash or Physical Settlement?

Perpetual swaps exclusively use cash settlement to avoid physical delivery and align the price with the spot market via a funding rate.
Greeks.Live24.11.25

Do Perpetual Swaps Use Cash or Physical Settlement?

Perpetual swaps, a type of futures contract without an expiry date, exclusively use cash settlement. They are designed to mimic the spot market without the logistical burden of asset delivery.

The price is kept aligned with the spot price through a mechanism called the funding rate.

What Is “Funding Rate” in Perpetual Swaps and How Does It Affect Traders?
How Can a Trader Use a Negative Funding Rate to Execute a ‘Cash and Carry’ Arbitrage Strategy?
How Does the Funding Rate Differ from a Traditional Interest Rate on Borrowed Capital?
What Is the Key Difference between a Perpetual Swap and a Traditional Futures Contract?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.