Perpetual Futures Explained

Intermediate10 min readLesson 93 of 166

The dominant crypto derivative — no expiry, funding-anchored to spot.

Overview

The dominant crypto derivative — no expiry, funding-anchored to spot. This lesson sits within the “Futures Trading” module of the HexaTrades Academy and builds directly on the concepts around it.

Key principles

  • Perps track spot via funding
  • No expiry means positions can run
  • Deep liquidity, high leverage available
HexaTrades
Illustrative price action for Perpetual Futures Explained. Always confirm concepts on live BTC, ETH and SOL charts.
Make it stick

Open a chart and find a live example of this concept on Bitcoin or Ethereum right now. Active recall on real price action beats passive reading every time.

Applying it in real markets

The majors — BTC, ETH, SOL and BNB — are the cleanest place to practice perpetual futures explained because they're the most liquid and least manipulated. Mark up a chart, journal what you see, and review it against the points above.

Risk first

No single concept is a complete edge. Combine it with sound risk management — fixed risk per trade, a defined stop, and a planned reward-to-risk — before you act on it.

Key takeaways

  • Perps track spot via funding
  • No expiry means positions can run
  • Deep liquidity, high leverage available

Test your knowledge

1. Which of the following is a core principle of “Perpetual Futures Explained”?

Frequently asked questions

Yes — this lesson is pitched at the Intermediate level. Work through the modules in order for the smoothest learning curve, and revisit earlier lessons whenever a concept feels shaky.

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