A perpetual swap is a popular financial instrument in the cryptocurrency trading world, offering traders a way to gain exposure to assets without the limitations of traditional futures contracts. Unlike standard futures, these contracts do not have a fixed expiration date, allowing traders to hold positions for as long as they wish.

Key Features of Perpetual Swaps
The standout feature of perpetual swaps is the periodic funding rate mechanism. This mechanism ensures the contract price stays close to the spot market price. Depending on the difference between the two prices, traders either pay or receive funding fees, providing opportunities for profit or cost management.

Perpetual swaps are particularly appealing to those looking to capitalize on price fluctuations while maintaining flexible trading strategies.