How Is a Perpetual Swap Derivative Different from a Traditional Futures Contract?

A perpetual swap is a derivative contract that, unlike a traditional futures contract, has no expiration date. It mimics the spot market price through a mechanism called the "funding rate," which is exchanged between long and short traders, typically every eight hours.

This rate keeps the perpetual swap price anchored to the underlying asset's spot price, eliminating the need for periodic rollovers.