đ€ : Have you ever wondered why so many coin pairs have "PERP" or "Perpetual" written next to them? Let me explain.
On Binance or similar cryptocurrency exchanges, when you see "Perpetual" (or "PERP") written next to a coin pair like "BTC/USDT PERP," it indicates that this is a Perpetual Futures Contract.
Perpetual Futures Contracts are a type of futures contract that does not have an expiration date. Unlike traditional futures contracts, which settle on a specific date, perpetual contracts can be held indefinitely. The price of these contracts is typically anchored to the spot market price through a funding rate mechanism, which helps to ensure that the perpetual contract price remains close to the actual price of the asset.
