Perpetuals (aka perpetual swap contracts) are financial derivatives, similar to futures, that enable traders/investors/speculators/hedgers to easily long and short cryptocurrencies with leverage. Perpetuals represent the price of a perpetual claim on an index (e.g. the BLADE BTC/USDT index).
Trading perpetuals is analogous to trading the underlying asset/cryptocurrency, but with leverage and a simple and efficient mechanism to short. An additonal advantage is that, since perpetuals never expire, traders never need to roll over their futures contracts from the front month to a further-out month.
As shown in the following table, BLADE lists both vanilla perpetuals and inverse perpetuals. Vanilla perpetuals are simpler contracts in which P&L is denominated in the quote currency. Inverse perpetuals are more complex contracts in which P&L is denominated in the underlying currency.
|Contract||Type||Leverage||P&L/Margin||Contract Size||Tick Size|
|BTC/USD||Inverse||150X||BTC||1 USD||0.25 USD|
|BTC/USDT||Vanilla||150X||USDT||0.0001 BTC||0.25 USDT|