Perpetual Futures Explained: How They Work and Why Traders Use Them
When you trade perpetual futures, a type of derivative contract that never expires and tracks the price of an asset like Bitcoin or Ethereum. Also known as perpetual contracts, they let you go long or short without ever having to take actual ownership of the underlying asset. Unlike regular futures that expire on a set date, perpetuals keep going—forever. That’s why they’re the most popular way to trade crypto on exchanges like Binance, Bybit, and OKX.
What makes them different is the funding rate, a periodic payment exchanged between long and short traders to keep the contract price close to the real market price. If longs pay shorts, it means the market is overbought. If shorts pay longs, it’s oversold. This mechanism keeps things balanced without needing an expiry date. You also trade with leverage, borrowed capital that multiplies your position size—often 10x, 50x, or even 100x. That means small price moves can turn into big profits… or wipe out your account fast.
Perpetual futures are everywhere in crypto because they’re flexible. You can short Bitcoin even if you don’t own it. You can hedge your spot holdings against crashes. You can trade 24/7 without worrying about contract rollovers. But they’re not for everyone. High leverage turns volatility into a gamble. Many traders lose money not because the market moved against them, but because they didn’t understand how funding rates or liquidation prices work. That’s why you’ll see posts here breaking down real exchange risks, scam platforms pretending to offer "guaranteed" perpetual trades, and how to spot when a platform is hiding dangerous terms.
What you’ll find below aren’t just generic guides. These are real reviews of platforms that claim to offer perpetual futures—some legit, some dangerous. You’ll see how Agni Finance and MoraSwap handle leverage, why Retro and AUX Exchange are red flags, and how to avoid fake airdrops tied to derivative trading. Whether you’re new to leverage or have been burned before, this collection cuts through the noise and shows you what actually matters when trading perpetuals.
