🔁 What is a perpetual futures contract and how does it work?

Futures trading used to belong to traditional finance — now it’s a core part of crypto. And in 2025, one instrument stands out: perpetual futures.

They let traders go long or short on crypto without ever worrying about expiry dates.

🧠 So what exactly are perp contracts?

A perpetual futures contract is a type of derivative that mimics spot trading — but with leverage. Unlike traditional futures, perps don’t expire, so you can hold your position as long as your margin allows.

They use a funding rate to stay in sync with the spot price.
Positive funding? Longs pay shorts.


Negative? Shorts pay longs. It’s a market balance mechanism.

⚙️ Why traders use perps

🔄 Go long or short anytime

🔧 Use leverage to amplify small price moves

💡 Hedge spot positions

🕒 Trade 24/7 without expiry pressure

Whether you’re speculating on $BTC or hedging $ETH exposure, perps give you flexibility traditional markets can’t match.

📈 Why Binance Futures?

Binance offers one of the largest perp markets in crypto — with:

Dozens of high-liquidity contracts

Up to 125x leverage

Cross & isolated margin modes

Real-time risk engine and fee optimization

Perfect for both scalpers and long-term traders.

👉 Start trading perps on Binance Futures
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