Perpetual Swap
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.
Leverage magnifies gains and losses. Liquidations can occur quickly in volatile markets; risk controls and position sizing are essential.
Related terms
4 linkedExplore connected entries beyond the alphabetical index.
Futures
→Futures are derivatives for long or short exposure to an asset; crypto markets commonly use perpetual futures with no expiry.
Funding Rate
→A funding rate is the periodic payment between long and short perpetual futures positions that helps anchor price to spot.
Leverage
→Borrowed or synthetic exposure that increases position size, amplifying both gains and losses.
Liquidation
→The forced closure of a leveraged position when collateral falls below required margin.
All terms and definitions may update as the Cryptionary improves.
