Perpetual Swap

A perpetual swap, commonly referred to as a perpetual futures contract, is a financial instrument used in derivative trading that allows investors to engage in buying or selling an asset at an undetermined future time. Unlike traditional futures contracts, perpetual swaps do not have a fixed expiration date and are settled in cash upon closing a position. Payments between long and short position holders are exchanged based on the disparity between the contract price and the underlying asset, considering any leverage involved.