What is a Perpetual Contract?

Perpetual contract, also known as perpetual swap, is a derivative product that is similar to a traditional futures contract, but does not have an expiry date or settlement.  Perpetual contract is often called as an “inverse future contract”, as the settlement of a BTC/USD futures contract are in BTC, rather than being settled in USD.

 

Traders may hold long or short positions for an indefinite period and close the positions at any time. At C-Trade, traders can utilize a leverage up to 150x to maximize the trading strategy.

 

The trading of perpetual contracts is based on an underlying Index Price. The Index Price consists of the average price of an asset, according to major spot markets and their relative trading volume. Therefore, unlike traditional futures, perpetual contracts are often traded at a price that is equal or very close to spot markets.