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Perpetual Swap

A futures-like contract with no expiry date that tracks an asset's price through a funding mechanism.

A perpetual swap (or perpetual future) is a derivative contract with no fixed expiry date, designed to track an underlying asset's spot price closely through an ongoing funding-rate mechanism.

It commonly allows leverage, meaning both potential gains and losses are magnified relative to an equivalent unleveraged spot position.

Examples

A trader might use a perpetual swap to gain leveraged price exposure without owning the underlying asset.
Unlike a traditional futures contract, a perpetual swap never expires.