Perpetual Contracts Explained for Regular Traders
Perps let you trade Bitcoin, ETH, or any asset with leverage — without expiry dates. Here is how they work and how to avoid getting liquidated.
Perpetual futures are the most traded crypto derivative by volume — far exceeding spot trading on most large exchanges. Yet most new traders do not understand the mechanics.
What Makes Perps Different
Regular futures expire on a set date. Perps do not — you can hold a long or short position indefinitely. They track the spot price via a "funding rate" mechanism: when perps trade above spot, longs pay shorts; when below, shorts pay longs. This keeps the perp price anchored to reality.
- Funding rate: the hourly cost of holding a leveraged position
- Initial margin: the deposit required to open a position
- Maintenance margin: the minimum to keep a position open before liquidation
- Open interest: total value of all open perp positions — a market sentiment indicator
Perps on Steyble
Steyble offers decentralised perpetuals — on-chain, non-custodial, with no KYC. You trade against a liquidity pool, not a counterparty. Start with 2-3x leverage and small positions until you have mastered the mechanics.