perpetualswap

A perpetual swap is a type of derivative contract commonly used in cryptocurrency trading, designed to allow traders to speculate on the price movements of assets without owning the underlying asset. Unlike traditional futures contracts, perpetual swaps do not have an expiration date, meaning they can be held indefinitely as long as the trader maintains sufficient margin. These contracts typically involve periodic funding payments between long and short positions to ensure the price of the swap stays in line with the spot market. Perpetual swaps are popular for their flexibility and ability to offer leverage, but they also carry higher risks.

Flexibility: Allows traders to hold positions indefinitely without expiration dates.

Leverage: Offers the ability to trade with borrowed funds, amplifying potential profits (and losses).

Continuous Market Exposure: Traders can take long or short positions at any time, ensuring constant market access.

Increased Liquidity: Contributes to market depth and efficiency, especially in cryptocurrency trading.