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Perpetual futures

A contract with no expiry date: the position lives as long as collateral holds out.

How to read the number

What ties it to spot is not an approaching settlement but regular payments between holders of opposite positions.

When the metric lies

Without expiry there is no convergence to enforce discipline: the position never closes itself, and the running cost of holding it can eat a correctly chosen direction.

Also known as: perpetual swap

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