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How Are Perpetual Contracts Priced?

The price of a perpetual contract is set by market supply and demand, tethered to the underlying asset by a funding rate.
Greeks.Live22.11.25

How Are Perpetual Contracts Priced?

The price of a perpetual contract is determined by the interaction of supply and demand on the exchange where it is traded. The price is designed to track the price of the underlying cryptocurrency, and the funding rate mechanism helps to keep the two prices in line.

The price of a perpetual contract can be affected by a number of factors, including the price of the underlying cryptocurrency, the funding rate, and the overall sentiment in the market.

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