A perpetual swap is a financial instrument designed to provide continuous exposure to the price movement of an underlying asset, such as cryptocurrencies, without requiring the trader to hold the asset itself. These contracts are particularly favored in the cryptocurrency market due to their flexibility and efficiency. Unlike traditional futures contracts, which have a set expiration and require periodic rollover, perpetual swaps are designed to trade indefinitely. This is achieved through the use of funding rates—a mechanism that incentivizes traders to maintain the contract price close to the underlying asset's spot price. When the perpetual swap's price deviates from the spot price, funding payments are exchanged between long and short position holders to correct the imbalance. This feature ensures market stability while providing traders with opportunities for leverage and short-term speculation. Additionally, perpetual swaps are highly liquid and widely available on major cryptocurrency exchanges, making them an essential tool for both retail and institutional traders seeking to capitalize on market volatility.