What are perpetuals?
Perpetuals, commonly referred to as “perps,” is short for perpetual futures contract. This is a type of agreement that lets you bet on the future price of a cryptocurrency without any deadline to settle the bet, meaning you can hold onto it for as long as you want.
The design of perpetuals in platforms like the Jupiter Perpetual Exchange incorporates mechanisms like funding rates to ensure that the prices of perpetual contracts stay anchored to the underlying spot price of the asset. This system allows for highly leveraged positions, offering the potential for significant returns but also increased risks. The trading interface on Jupiter Perpetual Exchange makes it possible for users to trade with up to 100x leverage on major cryptocurrencies like SOL, ETH, and BTC, using a system that automatically manages trade executions and liquidations through oracles and a liquidity pool.
For further details on how perpetuals operate on Jupiter and their trading mechanisms, you can check directly on their guides:
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