Cryptocurrency Q&A What is the difference between a contract and a perpetual?

What is the difference between a contract and a perpetual?

CryptoPioneerGuard CryptoPioneerGuard Thu Mar 06 2025 | 6 answers 1026
I'm trying to understand the distinction between a contract, which has a fixed term and specific obligations, and a perpetual, which seems to suggest an arrangement that is ongoing and potentially unlimited. Could someone clarify the main differences between these two? What is the difference between a contract and a perpetual?

6 answers

charlotte_bailey_doctor charlotte_bailey_doctor Sat Mar 08 2025
A perpetual future contract, often referred to as perps, is a crypto derivative asset with unique characteristics.

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mia_rose_painter mia_rose_painter Sat Mar 08 2025
It shares similarities with traditional futures contracts but includes some notable differences.

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SeoulStyle SeoulStyle Sat Mar 08 2025
One of the primary distinctions is the absence of an expiration date in perpetual contracts.

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MysticStar MysticStar Fri Mar 07 2025
Regular futures contracts must be settled on a specified expiration date, limiting their strategic flexibility.

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GinsengBoost GinsengBoost Fri Mar 07 2025
In contrast, perps do not have this constraint, providing traders with more options and potential strategies.

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