What Is the Difference between a Perpetual Contract and a Traditional Futures Contract?

The main difference between a perpetual contract and a traditional futures contract is that a perpetual contract has no expiration date. This means that a trader can hold a position for as long as they like, without having to worry about the contract expiring.

Traditional futures contracts, on the other hand, have a set expiration date, at which point the contract must be settled. Another key difference is the funding rate mechanism in perpetuals, which is absent in traditional futures.