Perpetual Futures Trading FAQs
Perpetual futures on Backpack Exchange let you go long or short on major crypto assets with leverage and no expire date. You can keep a position open as long as you manage margin and funding costs.
Perpetuals trading services are provided by Trek Labs Europe Ltd (formerly FTX EU Ltd), registration number HE335683, with registered address at Aiolou & Panagioti Diomidous 9, Katholiki, 3020 Limassol, Cyprus. Trek Labs Europe Ltd (formerly FTX EU Ltd) is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 273/15. The company operates through https://eu.backpack.exchange (formerly http://www.ftx.com/eu and https://ftxeurope.eu) and uses the trade name Backpack EU (formerly FTX EU).
Looking for in-depth walkthroughs? Check out our Backpack Guides and Tutorials at Learn.Backpack.Exchange or our trading system docs here.
What is a Perpetual Futures Contract (“PERP”)?
Perpetual futures are derivative contracts that track the price of an underlying asset but have no expiry date. You can hold them indefinitely, use leverage, and profit from both rising and falling markets without owning the underlying crypto.
How do I execute a PERP trade on Backpack EU?
To execute a PERP trade:
Log in to your Backpack EU account and navigate to the Futures Trading section.
Choose your trading pair (e.g., BTC-PERP).
Select your order type (market or limit order).
Set your leverage and size, then Buy/Long or Sell/Short. Your position appears instantly in the Positions panel, and PnL updates in real time.
Your trade will be processed based on your order specifications and current market conditions.
How do funding payments work?
Perps use an “index‐based” Mark Price and an 8-hour funding interval.
If the perpetual trades above the index, longs pay shorts; if below, shorts pay longs.
Funding occurs every 8 hours (at 00:00, 08:00 & 16:00 UTC).
You’ll see funding accrued in your PnL panel before it settles in your balance.
How is margin calculated and when will my position be liquidated?
Liquidations are triggered when your Maintenance Margin (based on Mark Price) hits the auto-close threshold. Your Maintenance Margin Ratio (MMR) must stay below 100 %. If Account Equity ÷ Position Notional ≥ MMR falls to 100 %, the liquidation engine will begin to close positions and/or sell collateral in an orderly fashion, The system first attempts to close via the order book, then, if needed, taps liquidity providers to protect against negative balances.
Note: Maintenance margin requirements vary by asset.
What’s the difference between stop-limit and stop-market orders?
Stop-Limit: Converts to a limit order once your trigger price hits. Execution is guaranteed only if there’s matching liquidity at your limit price.
Stop-Market: Converts to a market order upon trigger, guaranteeing execution but at the best available price (which may suffer slippage).
How do I adjust my leverage?
Leverage is controlled by your Max Account Leverage setting in Portfolio → Sub-accounts.
Lowering max leverage widens your maintenance buffer; raising it lets you open larger notionals against the same collateral.
How are trading fees calculated on perps?
Perpetual futures share the same maker/taker tier schedule as spot. Maker fees apply when you add liquidity (post a limit order that rests); taker fees apply when you remove liquidity. Fees are deducted in USDC at order execution. Check our fee structure for the most up-to-date information on trading fees.
What should I consider before placing a PERP position?
Before clicking Buy/Long or Sell/Short, run through a quick mental checklist: make sure your leverage and position size are small enough that an ordinary price swing won’t liquidate you; confirm you have sufficient liquid collateral in the sub‑account. Note your Maintenance Margin Ratio (MMR) and the estimated liquidation price to leave a comfortable volatility buffer; check the funding rate direction so you’re not surprised by continuous payments that erode PnL; gauge order‑book depth and market volatility to anticipate slippage on entry and exit; pre‑define an exit plan with stop‑loss and take‑profit triggers (use Reduce‑Only and Conditional orders so they can trigger while you’re offline) ensuring the position aligns with your broader strategy whether hedging spot, capturing a basis, or taking a directional view.
What are the risks associated with Perpetual Futures trading?
Perp contracts amplify both gains and losses because they are highly leveraged instruments: even a 1 % adverse price move can translate into a double‑digit loss on a 10× position. If your Maintenance Margin Ratio falls to 100 %, the liquidation engine will automatically close positions—often at the worst possible moment.
Continuous funding payments add another layer of risk; being on the wrong side of a persistent positive or negative rate can drain your balance even when price drifts sideways. During periods of extreme volatility or thin liquidity, large market orders may experience slippage, widening entry or exit prices beyond expectations. Because Backpack settles PnL in real time, profits are swept into your balance—great when you’re winning, but it also means unrealised losses materialise quickly and eat into collateral. Finally, technical disruptions. Understanding these intertwined risks—and sizing positions conservatively—remains essential to long‑term survival in perp markets.
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