What Are Perpetual Futures Contracts (Perps)?

Imagine a futures contract that never expires. Instead of closing on a fixed expiration date, you can keep your position open for as long as you choose, whether it is a day, a week, a month, or even longer. That is exactly how perpetual futures contracts work.This financial instrument originated in the cryptocurrency market and quickly gained popularity. Commonly known as "perps," they are now offered by many centralized exchanges, including those that support traditional financial markets. They