What Are Perpetual Contracts on Binance Futures?
Perpetual contracts (Perps) are a type of cryptocurrency futures contract that allows you to trade the price movements of cryptocurrencies like Bitcoin, Ethereum, Solana, and altcoins without having to own the actual cryptocurrency.
The biggest difference between perpetual contracts and traditional futures is that perpetual contracts have no expiry date.
You can hold a perpetual futures position for as long as you want, provided you maintain sufficient margin and meet the exchange's requirements.
1. How do perpetual contracts work?
On Binance Futures, you can trade in two directions:
3. Understanding funding rates
This is one of the most important concepts in perpetual futures trading.
Funding rates are payments exchanged between long and short traders.
Positive funding rate (+): Long traders pay short traders.
Negative funding rate (-): Short traders pay long traders.
For example:
Imagine you are shorting an altcoin with a position worth $10,000.
The funding rate is +0.01%.
You receive approximately $1 in funding, assuming you hold the position at settlement.
Funding intervals are commonly eight hours, but Binance can adjust them. Always check the countdown on the trading interface.
Binance+1
4. Example of a perpetual futures trade
Imagine you open a SOLUSDT perpetual contract:
#$BTC #askanda
Perpetual contracts (Perps) are a type of cryptocurrency futures contract that allows you to trade the price movements of cryptocurrencies like Bitcoin, Ethereum, Solana, and altcoins without having to own the actual cryptocurrency.
The biggest difference between perpetual contracts and traditional futures is that perpetual contracts have no expiry date.
You can hold a perpetual futures position for as long as you want, provided you maintain sufficient margin and meet the exchange's requirements.
1. How do perpetual contracts work?
On Binance Futures, you can trade in two directions:
3. Understanding funding rates
This is one of the most important concepts in perpetual futures trading.
Funding rates are payments exchanged between long and short traders.
Positive funding rate (+): Long traders pay short traders.
Negative funding rate (-): Short traders pay long traders.
For example:
Imagine you are shorting an altcoin with a position worth $10,000.
The funding rate is +0.01%.
You receive approximately $1 in funding, assuming you hold the position at settlement.
Funding intervals are commonly eight hours, but Binance can adjust them. Always check the countdown on the trading interface.
Binance+1
4. Example of a perpetual futures trade
Imagine you open a SOLUSDT perpetual contract:
#$BTC #askanda
