Perpetual contracts (also known as perpetuals or perps) are financial contracts that allow you to trade on the price movement of an asset without owning the asset itself.

Instead of buying or selling the actual asset, you open a position that follows its market price. As the price moves, your position may generate a profit or a loss depending on whether your prediction is correct.

Unlike traditional futures contracts, perpetual contracts do not have an expiry date. You can keep a position open for as long as you choose, provided you meet the margin requirements and your position is not liquidated.

When trading perpetual contracts, you’re predicting whether the price of an asset will move up or down.

If you believe the price will increase, you open a Long position.

If you believe the price will decrease, you open a Short position.

As the market price changes, the value of your position changes accordingly.

Unlike buying an asset outright, you never own the underlying asset. Instead, you trade a contract whose value tracks that asset’s price.

Perpetual contracts on Bayse track assets such as:

Available markets may change over time.

Perpetual contracts are commonly used because they allow traders to:

Some traders also use perpetual contracts to hedge existing investments.

Perpetual contracts remain open until you decide to close your position or it is automatically closed through liquidation.

Unlike traditional futures, there is no settlement date.

You can potentially profit whether prices rise or fall.

Perpetual contracts allow you to trade using leverage.

This means you only need to provide a portion of the total position value, known as margin, while controlling a larger position.

While leverage can increase potential profits, it also increases potential losses.

Perpetual contracts are more complex than regular spot trading.

Because they use leverage, market movements can have a greater impact on your position.

Before trading perpetuals, it’s important to understand:

Bayse recommends familiarising yourself with these concepts before opening your first position.

No. You are trading a contract that follows the asset’s price, you do not own the underlying asset.

No. Perpetual contracts have no expiry date. Your position remains open until you close it or it is liquidated.

Yes. By opening a Short position, you may profit if the market price decreases.

Perpetual contracts involve leverage and carry additional risk compared to spot trading. New traders should ensure they understand how the product works before trading.