Perpetual futures
A perpetual future is a futures contract without an expiry date, used to bet on the price of an asset without owning it.
Explained simply
A classic futures contract has a fixed end: on a given day it settles. A perpetual future has no end. The position can stay open as long as enough collateral is posted.
To stop the contract price drifting away from the real price, the two sides pay each other a regular adjustment, usually every eight hours. If the contract trades above the real price, buyers pay sellers, and the other way round.
These contracts are almost always traded with leverage. A small stake moves a large position, and even a modest adverse move can trigger forced liquidation. They are therefore not suitable for retail investors.
From the familiar world
Think of a bet on a property price where both sides pay a daily adjustment depending on whose view currently sits closer to the real market price. Nobody moves into the house, and the bet runs until one side exits or the collateral is used up.
An example
Perpetual futures have been the most traded instrument in crypto markets for years. In September 2026 Coinbase, Kraken and Crypto.com applied to US regulators to offer such contracts on individual US shares such as Apple or Tesla, tradable Sunday to Friday and cash settled.
Why it matters
The term explains why crypto markets swing so hard: a large share of trading happens on leverage, and forced liquidations amplify moves in both directions. What is new is that this instrument is now seeking a path into the regulated equity market.
To pass on
„Perpetual futures are bets on a price that never expire and almost always run on leverage. They explain why crypto markets move so fast in both directions.“
The content of this wiki is for general information and educational purposes only. It does not constitute investment advice, an investment recommendation or tax or legal advice. Digital assets are subject to strong price fluctuations and can lead to losses up to a total loss. Content as of 2026, no guarantee of completeness or timeliness.
21 Oaks Capital GmbH acts as a tied agent exclusively for the account and under the liability of AHP Capital Management GmbH, Weißfrauenstraße 12-16, 60311 Frankfurt am Main, Germany. This wiki is a general information service provided by 21 Oaks Capital GmbH. Its content does not constitute individual investment advice and is not a recommendation by AHP Capital Management GmbH. 21 Oaks Capital GmbH, its affiliated companies, the funds it advises or its employees may hold positions in assets explained in this wiki. The explanations are independent of this; the disclosure is made for reasons of transparency.