Price

Overview

The perpetual swaps Price indicator illustrates the variation in price for this type of derivatives contracts unique to crypto. Since perpetual swaps do not have an expiration date, the price of the contract is artificially pegged to the underlying asset’s price using a mechanism called the funding rate.

💡 How can I use it?

Perpetual Swaps Price for Bitcoin

Perpetual swaps, which have surpassed spot markets in volume for top crypto-assets, are helpful for price discovery. This is similar to traditional markets where derivatives volume surpasses spot volumes, and therefore derivatives end up being a more liquid, accurate reflection of an asset’s price.

However, with crypto being a nascent class, there can still be small differences in perpetual swaps’ prices across exchanges which users can exploit for arbitrage. More information on this is displayed on the basis indicator.