Glossary
What are perpetual futures?
Also called: perps, perpetual swaps, perpetual contracts, perpetuals
Updated Ninja Terminal team
Definition
Perpetual futures are derivative contracts that track the price of an asset and never expire. A funding rate paid between long and short traders keeps the contract price close to the underlying spot or index price. Traders can hold a position as long as they keep enough margin, and can use leverage and go long or short.
A dated futures contract settles on a fixed date, and its price converges to spot as that date nears. A perpetual has no settlement date. Instead, a funding rate charges one side and pays the other at regular intervals, which pushes the contract price toward the index price.
What makes a perpetual different from spot?
- You trade a contract, not the coin itself, so you can go long or short.
- You post margin and can use leverage.
- You can be liquidated if equity falls below the maintenance margin.
- You pay or receive funding while the position is open.
How do venues name them?
| Venue | Name and types |
|---|---|
| Binance | USD-M futures (see USD-M futures) and COIN-M futures (see COIN-M futures) |
| OKX | Perpetual swaps (instrument type SWAP) |
| Bybit | Linear and inverse perpetuals (see inverse perpetual) |
| Hyperliquid | Perpetuals, funded hourly, including builder-deployed markets (see HIP-3) |
What are the main risks?
Leverage magnifies losses as well as gains, and funding is a running cost or income that depends on market conditions. Liquidation can close a position at a loss before you act. Ninja Terminal currently supports USD-M (Binance) and linear (Bybit) perpetuals, plus OKX perpetual swaps and Hyperliquid perpetuals. It is not an exchange and does not give investment advice. Your orders run on your own exchange account.
Frequently asked questions
What is the difference between perpetual futures and futures?
Dated futures expire and settle on a set date. Perpetuals do not expire, and use a funding rate to stay close to spot.
Are perpetual swaps the same as perpetual futures?
In practice, yes. OKX uses the term perpetual swap for the same kind of contract.