Perpetual Swap

A perpetual swap, also known as a perpetual futures contract, is a derivative trading instrument that allows an investor to buy or sell an asset at an unspecified time in the future. When an investor opens a position in a perpetual swap, it is typically cash-settled and has no expiry date. Payments are sometimes exchanged between holders of both sides of the contract (for both longs and shorts) when opening a position, meaning that the direction and amount of the settlement are based on the difference between the underlying asset and the contract price, and, if relevant, the difference in leverage between both sides.