What is Perpetual Trading?
Learn how perpetual futures work, funding rates explained, and how to trade perps on DEXes like oklong with up to 100x leverage.
Perpetual futures (or "perps") are a type of derivative contract that lets you speculate on an asset's price without owning it. Unlike traditional futures, perpetual contracts have no expiry date - you can hold positions indefinitely.
How Perpetual Futures Work
When you trade perps, you're essentially betting on whether an asset's price will go up (long) or down (short). The key mechanism that keeps perpetual contract prices aligned with the underlying spot price is the funding rate.
Funding Rate Explained
Every 8 hours, traders on one side pay traders on the other side based on the funding rate:
- Positive funding rate: Longs pay shorts (perp price > spot price)
- Negative funding rate: Shorts pay longs (perp price < spot price)
Why Trade Perpetuals on a DEX?
Decentralized perpetual exchanges like oklong offer several advantages over centralized alternatives:
- Self-custody: Your funds stay in your wallet until trade execution
- No KYC: Trade without identity verification
- Transparency: All trades are on-chain and verifiable
- No counterparty risk: No exchange can freeze or seize your funds
Getting Started with Perp Trading
To start trading perpetuals on oklong:
- Connect your wallet (MetaMask, Phantom, etc.)
- Deposit USDC as collateral
- Select a trading pair (e.g., BTC/USDC)
- Choose your position size and leverage (up to 100x)
- Open a long or short position
Ready to Start Trading?
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