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What Is a “Perpetual Swap” and Why Is It the Most Popular Crypto Derivative?

A futures contract with no expiration date, popular for offering continuous trading and high leverage, maintained by a "funding rate."
Greeks.Live17.11.25

What Is a “Perpetual Swap” and Why Is It the Most Popular Crypto Derivative?

A perpetual swap is a type of futures contract that, unlike traditional futures, has no expiration date. It allows traders to hold a leveraged position indefinitely.

It is the most popular crypto derivative because it offers continuous trading and high leverage without the complexity of rolling over expiring contracts. The price of the perpetual swap is kept close to the underlying asset's spot price through a "funding rate" mechanism, where traders on one side of the contract pay traders on the other side at regular intervals.

What Is a ‘Perpetual Swap’ and How Does Its Margin Differ from a Traditional Future?
What Is the Key Difference between a Perpetual Swap and a Traditional Futures Contract?
How Does the Funding Rate of a Perpetual Swap Relate to Inventory Risk for a Market Maker?
What Is the Difference between a ‘Futures Contract’ and a ‘Perpetual Swap’?

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