Perpetual Futures 101: What Beginners Should Know

1. What Are Perpetual Futures?

Perpetual contracts allow you to trade crypto with leverage (e.g., 5x, 20x).
There is no expiry date, meaning you can hold positions indefinitely.

2. Key Terms

  • Leverage — magnifies profit and loss
  • Margin — collateral you put in
  • Funding Rate — periodic fee between longs and shorts
  • Liquidation — when your margin is insufficient

3. How to Open a Futures Position

  1. Transfer funds to Futures Wallet
  2. Select leverage
  3. Choose Long (price up) or Short (price down)
  4. Monitor PnL, liquidation price, and funding

4. Risk Tips

  • Start with low leverage (2–5x)
  • Always use stop-loss
  • Understand funding rate impact
  • Never all-in on a single trade