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What Is a Perpetual Swap and Why Is It Popular in Crypto Trading?

A perpetual swap is a derivative contract similar to a futures contract but with no expiration date. This allows traders to hold leveraged positions indefinitely, which is highly attractive for speculation.

A funding rate mechanism is used to keep the swap price anchored to the underlying spot price, which is paid between long and short traders. Its simplicity and leverage make it a favorite for the active crypto user base.

What Is a “Perpetual Futures” Contract Common in Crypto Markets?
Define a ‘Perpetual Futures Contract’ in Cryptocurrency Trading
What Is the Difference between a Perpetual Futures Contract and a Traditional Futures Contract?
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