What are perpetual futures? Perps, funding rates, and liquidations explained
22 Jun 2026 · 13:30 UTC · Crypto.News RSS Feed · Original source
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Summary
Perpetual futures, or perps, are the most traded instrument in crypto. They let you bet on price with leverage and never expire, held in line with the spot market by a clever fee called the funding rate.
Why it matters
Perpetual futures are a key component of crypto trading, allowing traders to leverage their positions without expiration. The article's educational nature means it may lead to more participants in the market, particularly in altcoins, which are often more sensitive to trading instruments like perps. However, the impact will likely be gradual, as it depends on traders' willingness to adopt these instruments and their understanding of associated risks, such as liquidations and funding rates.
Expected impact
The article provides a comprehensive overview of perpetual futures, which are important instruments in crypto trading. As traders gain a better understanding of these products, we can expect increased trading activity and potentially more volatility in the market, especially for altcoins. Over time, this could lead to a gradual increase in market sentiment as more traders engage with these instruments.