Perpetual futures are a type of derivative contract that allows traders to speculate on the price of an asset without an expiration date. Unlike traditional futures contracts, which have set expiration times, perpetual futures can be held indefinitely.These contracts are typically used for trading cryptocurrencies, making them popular among traders who want to take advantage of price movements without having to roll over their positions. Perpetual futures include a mechanism called funding rates, which helps keep the contract price in line with the underlying asset’s spot price. Traders either pay or receive funding fees at regular intervals based on the difference between the contract price and the spot price. The leverage offered in perpetual futures can amplify profits but also increases the risk of significant losses. This feature attracts both professional and retail traders looking to maximize their trading strategies without worrying about approaching expiration dates.