STRATEGIES
Perpetuals (Perpetual Futures)
Definition
Perpetual futures are derivative contracts that track an underlying asset's price without an expiration date. They use funding rates to keep prices aligned with spot markets.
Example
Example
Trading ETH perpetuals on dYdX allows you to go long or short ETH with leverage, paying or receiving funding rates based on market sentiment.
Risks to Consider
Risks
- Funding rate costs
- Liquidation risk
- Basis risk
- Counterparty risk