CoinDesk·3 min read·medium

The good and the bad of perps, according to crypto traders

O
Omkar Godbole
The good and the bad of perps, according to crypto traders
AI Summary

Crypto traders are increasingly relying on perpetual futures, or 'perps,' due to their deep liquidity and lack of expiration dates compared to traditional futures. While these derivatives offer high margin efficiency, traders must account for recurring funding rates that can impact long-term profitability.

Talk about crypto trading with any savvy trader, and the first thing that comes up these days is perpetual futures, or “perps” — derivatives contracts that allow traders to control a much larger position than the money held in the account. Perps work like standard futures, but with one key advantage: there is no expiry.

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