A perpetual future is a futures contract with no expiry, marked to market continuously, whose holders exchange periodic payments that push its price towards an index of the underlying’s spot price. The payment per unit of position value is the funding rate, positive when longs pay shorts; the period between payments is the funding interval, commonly eight hours.
Quantitative Finance · Glossary
What is Perpetual future, funding rate, funding interval?
Also known as: perpetual future · funding rate · funding interval