# Perpetual Futures

> A futures contract with no expiry date. Common in crypto, kept in line with the spot price by funding payments.

Canonical URL: https://fudfomo.co/glossary/perpetual-futures
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

A perpetual future, often shortened to perp, is a futures contract that does not expire. Traders can hold a long or short position for as long as their margin allows.

To stop the perp price drifting away from the spot price, the contract uses a periodic funding rate that one side pays the other. Perps are popular because they let traders take leveraged positions on crypto without having to roll contracts.

## Regulatory context

Perpetual futures are restricted or banned for retail customers in several jurisdictions, including the UK and parts of the EU.

## Related terms

- [Funding Rate](https://fudfomo.co/glossary/funding-rate): A periodic payment between long and short perpetual futures traders that keeps the contract close to spot.
- [Leverage](https://fudfomo.co/glossary/leverage): Trading with borrowed funds, so a small move in the price has a much bigger effect on your position.
- [Margin](https://fudfomo.co/glossary/margin): The capital you put up to open and maintain a leveraged position.
- [Futures](https://fudfomo.co/glossary/futures): A contract to buy or sell an asset at a fixed price on a future date.

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