Glossary
Perpetual futures
A leveraged derivative that tracks an asset's price with no expiry date, kept in line with spot through a periodic funding payment between longs and shorts.
A traditional futures contract expires on a date. A perpetual does not: you can hold it indefinitely, and instead of an expiry the exchange uses a funding rate — a small payment every few hours from one side to the other — to keep the contract price near the spot price. Perpetuals let you trade with leverage and go short, which is why they dominate crypto trading volume and why derivatives-first exchanges like Bybit, OKX and Bitget exist.
Fees on perpetuals are quoted like spot fees but are much lower per trade — 0.02% maker and 0.05% taker is the standard entry tier at Binance, OKX and Kraken; Bybit is 0.055% taker, Bitget and KuCoin 0.06%, MEXC 0.02% — because the notional is larger and the exchange also earns from funding and liquidations. Our fee calculator shows the round-trip cost of opening and closing at taker rates.
Leverage is the reason to be careful. A position that moves against you by more than your margin is liquidated: closed by the exchange, with the margin lost. Perpetuals are not available on Coinbase or Kraken in every jurisdiction and are restricted or banned for retail in several countries; the country pages note where.
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Frequently asked questions
Do perpetuals ever expire?
No. They can be held indefinitely as long as your margin covers the position. The funding rate replaces the expiry mechanism of a dated contract.
Are perpetual futures legal where I live?
Retail access to leveraged crypto derivatives is restricted in the UK, banned or limited in several other markets, and available with leverage caps in others. Check the country page for your jurisdiction.
Related terms and pages
Related terms
- Funding rate
The periodic payment between long and short holders of a perpetual futures contract that keeps its price anchored to spot.
- Liquidation
The forced closure of a leveraged position by the exchange when losses have consumed the margin backing it.
- Insurance fund
A pool of assets an exchange sets aside to cover losses — either customer losses after a security incident, or liquidation shortfalls on derivatives, depending on the fund.
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