Perpetuals (perps)
Also known as: perps, perpetual futures, perpetual swap
Futures-like contracts with no expiry that track an asset's price using a funding rate; trading gains are generally revenue.
Definition
Perpetuals ("perps") are derivative contracts that mimic futures but never expire, staying close to the spot price through periodic funding payments between longs and shorts. They are popular for leveraged crypto trading. Like other derivatives, perp trading is speculative and active, so profits and losses are generally revenue, and funding payments paid or received form part of that result, measured in rands.
Example
You hold a leveraged long perp on ETH, paying funding while in profit overall; the net result is generally revenue, recorded in rands.
Jurisdiction notes
- South Africa: Perpetuals trading is generally revenue; funding paid or received forms part of the trading result.