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  1. Home
  2. /Glossary
  3. /Perpetual Swap
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Perpetual Swap

A derivative contract similar to futures but with no expiration date.

Definition

A derivative contract similar to futures but with no expiration date. Perpetuals use funding rates to keep prices close to spot. They're the most popular crypto derivative, offering up to 100x leverage on some platforms.

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Related Terms

Futures

Contracts to buy or sell an asset at a specific price on a future date.

Derivatives

Financial contracts whose value is based on an underlying asset.

Funding Rate

A periodic payment between long and short traders in perpetual futures markets that keeps the contract price close to spot price.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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