Understanding Perpetual Contracts
Perpetual contracts are cryptocurrency-derived financial instruments that use underlying coins/tokens to calculate prices, execute trades, and settle positions. Unlike traditional futures, these contracts have no expiration date, allowing investors to hold positions indefinitely. They combine features of:
- Spot trading (flexible entry/exit)
- Futures contracts (leverage trading)
- Margin markets (continuous pricing)
Key characteristics:
- No forced expiration - Positions remain open until liquidated or manually closed
- Leverage availability - Built-in margin trading functionality
- Index-aligned pricing - Tracks reference markets more closely than dated futures
- Long-term suitability - Ideal for extended holding periods without rollover requirements
How Perpetual Contracts Work
Core Mechanics
- Settlement occurs continuously rather than at fixed intervals
- Funding rates periodically adjust to maintain price parity with spot markets
- Positions use mark price (index-based) rather than last traded price to prevent manipulation
Trading Advantages
👉 Discover advanced perpetual trading strategies
- 24/7 market access with no expiry management
- Higher capital efficiency through leverage (typically 1-125x)
- Bidirectional opportunities (long/short positions)
Bitget Wallet's Contract Trading Features
Bitget Wallet (formerly BitKeep) now integrates Bitget's derivatives platform, offering:
| Feature | Benefit |
|---|---|
| 88+ contract pairs | Broad market coverage |
| Competitive spreads | Cost-effective execution |
| No mandatory KYC | Faster onboarding |
| USDT margin | Unified collateral |
Note: Services may be restricted in certain jurisdictions due to regulatory requirements.
Frequently Asked Questions
What's the difference between perpetual and quarterly futures?
Perpetual contracts eliminate expiry dates and rollover costs, while quarterly futures have fixed settlement dates (typically March/June/September/December).
How does funding rate work?
Every 8 hours, long/short positions exchange payments based on the funding rate. Positive rates mean longs pay shorts (common in bullish markets), while negative rates indicate shorts pay longs.
What are the risks of perpetual contracts?
Key risks include:
- Leverage magnification of losses
- Funding cost fluctuations
- Market volatility during high-impact events
👉 Learn risk management techniques for crypto derivatives
Why Trade Perpetuals on Bitget?
- Flexible leverage - Adjust between 1x-125x as market conditions change
- Diverse selection - 86+ major perpetual contracts available
- Optimized execution - Tight spreads with deep liquidity
- Accessibility - USDT-denominated trading with minimal barriers
Remember: Derivatives trading carries substantial risk and isn't suitable for all investors. Always employ proper risk controls.