Perpetual Futures
Futures contracts with no expiry - the most liquid crypto market.
Perpetual futures (perp) are synthetic contracts that never expire. Price tracks spot via funding rate - every 8h longs and shorts pay each other based on positioning. Perp volume is 5-10x spot - most short-term BTC trading happens here. Liquid but dangerous: 100x leverage on Binance, one small correction = liquidation.
In plain words
A contract on BTC price that never expires. Every 8h longs and shorts pay each other to keep price near spot.
Example
May 2024: BTC perp open interest 35B USD, funding rate +0.05%/8h = longs pay shorts 0.15%/day = 55%/year.
Also known as: perp, perpetual swap