L'INFORMATEUR CRYPTOHome › Glossary › Perpetual futures (perp)
Perpetual futures (perp): definition
A perpetual contract is a futures contract with no expiry date, used to bet on price going up or down with leverage.
Definition
The perpetual (or “perp”) is the most traded derivative in crypto. It tracks a crypto's price without ever expiring. You can buy (long) or sell short (short), with leverage.
How its price stays aligned
The funding rate continuously rebalances the perpetual price and the spot price: the majority side pays the other.
What it reveals
Activity on perpetuals (open interest, funding, perp CVD, long/short ratio) shows the behavior of leveraged traders, who often amplify short-term moves.
Frequently asked questions
What's the difference with a regular future?
A regular future has an expiry date (quarterly on the CME for example); the perpetual doesn't, hence the funding mechanism.