Glossary
Perpetual futures: meaning, example and why it matters
Crypto derivative contracts with no expiry date that track the spot price using periodic funding payments. They are usually leveraged, so losses can come quickly.
Worked example
If the funding rate is +0.01% every 8 hours, a long position of $10,000 pays about $1 per period (0.01% × 10,000), and the payment goes to the other side. The sign of the rate decides who pays.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
Funding keeps the contract near the spot price, and it is a continuing cost or income for holders.
Related terms
Frequently asked questions
Can I lose more than I deposit in perpetual futures?
On leveraged positions losses can be large and positions can be closed by the exchange when margin runs low.
Is this page investment advice?
No. Perpetual futures is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Start learning free →Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.