What is a perpetual future?
A perpetual future — often called a "perp" — is a type of futures contract that never expires. Unlike traditional futures that settle on a specific date, perpetual futures let you hold a position indefinitely. You can go long (bet the price goes up) or short (bet the price goes down) on an asset without ever owning it.
Perps are the most traded instrument in crypto, with daily volumes exceeding $100 billion across all exchanges.
How do perps differ from spot trading?
When you buy Bitcoin on a spot exchange, you own actual Bitcoin. With perpetual futures, you're trading a contract that tracks Bitcoin's price. The key differences:
Leverage — perps let you trade with up to 50x leverage, meaning $1,000 can control a $50,000 position.
Short selling — you can profit from price drops by going short, which isn't possible with spot trading.
No ownership — you never hold the underlying asset. Your profit or loss is settled in USDC.
What is the funding rate?
Since perps never expire, they use a mechanism called the funding rate to keep the contract price aligned with the spot price. When the perp price is above spot, longs pay shorts. When it's below, shorts pay longs. Funding payments happen every 8 hours on most exchanges.
This means holding a position long-term has a cost (or benefit) depending on market conditions.
What is liquidation?
When you trade with leverage, your position has a liquidation price. If the market moves against you enough to deplete your margin (collateral), your position is automatically closed — this is called liquidation.
Higher leverage means your liquidation price is closer to your entry. At 50x leverage, a 2% move against you would liquidate your position. This is why risk management with stop-losses is critical.
How to trade perps on Relentless
On Relentless, you can trade perpetual futures on 100+ markets including crypto, US stocks, commodities, and forex. Sign up with just an email — self-custodial. Deposit crypto or pay with a card, set your leverage, and place your first trade in under a minute.
All trades are non-custodial — your keys never leave your browser. You maintain full control of your funds at all times.