Perpetuals pertain to a special type of futures contracts; unlike the traditional form of futures, the perpetual contract does not have an expiry date. As a result, holders of the perpetual contracts can hold the position for an infinite period of time. However, to ensure that the perpetual price and index price converge on a regular basis, periodic funding payments are made to or by traders who are long or short based on the difference between perpetual contract markets and spot prices.
Perpetuals also allow traders to open positions larger than their account size, amplifying either the profit or loss made by the trader. Trading on margin opens up the opportunity for higher gains, but also increases the risk of greater losses. Important: Traders can easily find themselves losing more than they bargained for by overextending their account in margin trades. Only trade with what you can afford to lose.