What Are Perps?
Perpetual futures, or Perps, are trading contracts that allow you to speculate on whether an asset’s price will increase or decrease without directly buying and holding the asset.
For example, let’s say Bitcoin is trading at $60,000.
📈 Think Bitcoin will go up? → Go Long
📉 Think Bitcoin will go down? → Go Short
How Does Leverage Work?
Leverage allows you to control a larger position using a smaller amount of your own funds.
For example:
$100 margin × 5x leverage = $500 position
If Bitcoin moves in the direction you predicted, leverage can amplify your potential gains compared with trading without leverage.
However, leverage works both ways. If the market moves against your position, your losses are also amplified, and you may lose some or all of the margin used for the trade.
Long vs. Short
Long 📈
You open a Long position when you expect the price of an asset to rise.
Short 📉
You open a Short position when you expect the price of an asset to fall.
⚠️ Understand the Risks
Perps can offer opportunities in both rising and falling markets, but they are high-risk products. Leverage increases both potential gains and potential losses. Market movements can happen quickly, and you may lose your margin.
Before trading Perps, make sure you understand leverage, margin, liquidation, fees, and the risks involved.
Trade responsibly and only use funds you can afford to lose.