Perpetual Futures Trading Fundamentals: Funding Rates, Basis Spreads, and Liquidation Risk Control
Introduction to Perpetual Futures Trading
Perpetual futures contracts have become the most popular crypto derivatives instrument, providing traders with leveraged exposure to Bitcoin, Ethereum, and a growing list of alt-coins. Unlike traditional futures, perpetuals never expire, allowing positions to be held indefinitely. This structural twist creates unique mechanics—funding rates,