In: Glossary
Perpetual (perp)
A futures contract with no expiry date.
A perpetual, or perp, is a futures contract that never expires. Instead of settling on a fixed date, a funding mechanism keeps its price tethered to the underlying spot price.
This lets you hold a leveraged long or short position indefinitely, as long as you keep enough margin to avoid liquidation.
The recurring cost or income of holding a perp is the funding rate.