Perpetual vs Futures: What Is the Difference?

Perpetual swaps versus dated futures: expiry, funding, and why perps dominate crypto leverage trading.

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Dated futures

A traditional futures contract has an expiry date. On that date it settles to the spot price, so the contract price converges to spot as expiry approaches. You trade it for a fixed term, then it is gone.

Perpetual swaps

A perpetual ("perp") never expires. To keep its price tethered to spot without an expiry, exchanges use a recurring funding payment between longs and shorts. That mechanism replaces settlement.

Why perps dominate crypto

Perps let traders hold leverage indefinitely with no rollover, which is why they make up the vast majority of crypto derivatives volume. The trade-off is funding: at high leverage it can quietly drain a position even when price is flat.

FAQ

Do perpetual contracts expire?

No. Perpetual swaps never expire — a recurring funding payment keeps their price tied to spot instead of a settlement date.

What is the difference between futures and perpetuals?

Dated futures settle on an expiry date, while perpetuals run indefinitely and use funding payments to stay near spot. Crypto trading is dominated by perpetuals.

For information only — not financial advice. Explore the live data on the markets hub.