Perpetual futures (perps) let you trade with leverage and profit from both rising and falling prices. This guide covers the essentials.
What Are Perpetuals?
Perps are futures contracts without expiry:
- No settlement date
- Funding rates maintain price peg
- Long or short with leverage
- Trade 24/7 on-chain
Key Concepts
| Term | Description |
|---|
| . . . | . . . . . . - |
| Leverage | Multiplied exposure (2x-50x) |
| Funding Rate | Payment between longs/shorts |
| Liquidation | Forced close below margin |
| Mark Price | Fair price for liquidations |
Risk Warning
Leverage trading is extremely risky:
- You can lose your entire position
- Liquidations happen fast
- Funding fees accumulate
- Only trade what you can lose
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Track your perp positions with Fensory. Monitor PnL across platforms.
Start Tracking →Step-by-Step Instructions
1
Understand the Risks
Perp trading with leverage can result in rapid, total loss of funds. Only use money you can afford to lose.
Warnings
- ⚠Most retail traders lose money
- ⚠Start with paper trading or tiny amounts
- ⚠Never trade with borrowed money
2
Choose a Platform
Select a decentralized perp exchange: GMX, Hyperliquid, dYdX, or others.
Tips
- ✓GMX has no price impact on trades
- ✓Hyperliquid has the best fees
- ✓Consider L2 platforms for lower costs
3
Fund Your Account
Deposit collateral to the platform. Most accept USDC, ETH, or their native tokens.
Tips
- ✓Bridge to the right network first
- ✓Keep extra for gas fees
4
Place a Trade
Select asset, direction (long/short), size, and leverage. Review liquidation price.
Tips
- ✓Start with 2-3x leverage maximum
- ✓Lower leverage = lower risk
- ✓Set stop loss before entry
5
Set Stop Loss and Take Profit
Always use stop losses. Set TP levels for taking profits.
Tips
- ✓Risk 1-2% of account per trade
- ✓Use trailing stops if available
Warnings
- ⚠Positions without stops can go to zero
6
Monitor and Manage
Watch your position, funding rates, and margin levels. Close or adjust as needed.
Tips
- ✓Funding is charged every 8 hours typically
- ✓Add margin if getting close to liquidation
7
Close Position
Close your position when target is reached or to cut losses. Withdraw profits.
Tips
- ✓Do not let winners become losers
- ✓Take partial profits along the way
