A derivative similar to a futures contract but without expiry, kept near spot via funding payments.
Perpetual swaps track an index price without settlement dates. Funding payments between longs and shorts align the contract price with spot.
"A BCH perpetual swap trading above spot results in positive funding—longs pay shorts until prices converge."
Leverage magnifies gains and losses. Liquidations can occur quickly in volatile markets; risk controls and position sizing are essential.
"Using 10x leverage, a 10% adverse move can wipe out the position via liquidation."
All terms and definitions may update as the Cryptionary improves.