$ qubo learn derivatives/01

Perpetual futures explained

A perpetual future, or perp, is a contract that tracks the price of an asset without ever expiring. It lets traders take a long position (gaining if the price rises) or a short position (gaining if it falls) without holding the asset.

Perps are traded with margin: a deposit that backs the position. Leverage is the position size divided by the margin. At 10× leverage, a 1% move changes the margin by 10%.

Because a perp has no expiry, its price could drift away from the spot price. A mechanism called funding, covered in the next lesson, keeps the two close.

Perp volumes on large venues often exceed spot volumes. That is why perp data such as funding, open interest and liquidations tells a lot about how the market is positioned.

// rule to remember

// your turn

Open Perps Hyperflow and find the asset with the largest open interest.

Educational content only. Not investment advice. Past data does not predict future results. Risk disclosure