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Perpetual futures: definition and meaning
A perpetual future is a derivative contract that tracks an asset's price and has no expiry date. A funding rate keeps its price close to the spot price.
Why it matters
They are popular for leveraged trading but carry liquidation and funding costs.
Related terms
- Funding rate
The funding rate is a periodic payment between long and short traders in perpetual futures… - Leverage
Leverage lets you open a position larger than your own capital by borrowing, which multipl…
Guides that explain more
Educational content only, not financial advice.