Perpetual futures are the most traded product in crypto. They let you profit from rising or falling prices with leverage — and they can liquidate an account in minutes. This guide covers the basics you must understand first.
What are perpetual futures?
A perpetual futures contract tracks the price of a coin such as Bitcoin but never expires. You do not own the coin; you hold a contract that gains or loses value as the price moves. Most exchanges, including Bitunix, MEXC and BitBase, offer USDT-margined perpetuals, so your profit and loss is settled in USDT.
Long and short
- Long — you profit if the price goes up.
- Short — you profit if the price goes down.
The ability to short is why futures traders can make money in falling markets.
Isolated vs cross margin
- Isolated margin — only the margin assigned to that position can be lost. Recommended for beginners.
- Cross margin — your whole futures balance supports all positions. One bad trade can drain the entire account.
Liquidation price
Your liquidation price is where the exchange force-closes your position because your margin can no longer cover losses. As a rough guide, at 10x leverage a move of about 10% against you liquidates the position (a little less after fees). At 50x it is about 2%, and at 100x about 1%. Bitcoin can move 1% in minutes.
Funding rate
Because perpetuals never expire, exchanges use a funding rate to keep the contract price close to the spot price. Every few hours, longs pay shorts (or shorts pay longs) a small percentage. If you hold a position for days, funding can add up to a large cost.
Fees
Exchanges charge a maker fee (for limit orders that add liquidity) and a taker fee (for market orders). Bitunix charges 0.02% maker and 0.06% taker on futures; MEXC charges 0% maker. Fees are charged on the full leveraged position size, not on your margin.
A simple risk plan
- Use isolated margin and low leverage (2x–5x) while learning.
- Risk no more than 1–2% of your balance per trade.
- Always place a stop loss — well before your liquidation price.
- Avoid holding big positions through major news.
- Withdraw profits regularly to your own wallet.
Choosing an exchange
Compare leverage, fees, KYC rules and country availability in our crypto exchange comparison. Our top pick for futures is Bitunix.
