Benefits of Trading Perpetual Futures (Perps)

Perpetual contracts offer unique advantages that make them an attractive trading instrument for both experienced traders and newcomers to the derivatives market.

Key Benefits

1. No Expiry Date

Perpetuals have no expiry - you can hold a position indefinitely, unlike standard futures which settle at a fixed date. This gives traders complete flexibility over their position timing without worrying about rollover dates.

2. Simplicity in Settlement

Settlement is continuous, avoiding the sometimes-complex mechanics of expiry and physical/spot settlement found in traditional futures. This makes perpetuals easier for beginners to understand and trade.

3. Efficient Leverage

Perpetuals offer lower capital requirements to open large positions, providing traders with more efficient use of their capital compared to spot trading.

4. Funding Rate Mechanism

Instead of futures "premium/discount", perps use a funding rate system:

• Payments are exchanged between longs and shorts, keeping the perp's price anchored to spot

• This reduces price divergence from the underlying spot market, keeping trades "fairer" over time

5. 24/7 Trading

Crypto perps trade 24/7, allowing traders to access markets continuously without being restricted by traditional market hours.

6. Hedging and Speculation

Perps are ideal for both hedging long-term spot exposure and for speculation on short-term price moves, thanks to continuous trading and margin efficiency.

7. Transparent Pricing

Because of the funding rate and index price anchoring, perps often track more closely to the underlying spot market compared to illiquid, off-market futures. This provides traders with more accurate and transparent pricing.

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Start trading perpetual contracts to experience these benefits firsthand.