A perpetual swap is a type of derivative contract that allows traders to speculate on the price of an asset without an expiration date. Unlike traditional futures contracts, which have a set settlement date, perpetual swaps remain open as long as the trader maintains sufficient margin. These contracts typically use a funding mechanism to ensure their price stays close to the underlying asset’s spot price. Traders can utilize leverage to amplify potential gains or losses, making perpetual swaps a popular choice in volatile markets. However, they also carry risks, as price fluctuations can lead to liquidation if margin requirements are not met.