Perps 101

Perps are derivative contracts that let you take a long (bet price goes up) or short (bet price goes down) position on an asset, with leverage and they never expire. That means you don’t have to “r…

What are perpetual futures (“perps”)?

Why traders use perps

Leverage: control a larger position with less collateral (higher upside, higher risk).
Shorting: profit if the price drops, without borrowing the asset.
Single, deep market: liquidity concentrates in one perpetual instrument rather than being split across multiple expiries/strikes.

The core concepts (in plain terms)

Margin / Collateral: the funds you put up to support your position.
Leverage: position size ÷ collateral (e.g., 10x means $100 collateral controls ~$1,000 position).
PnL (Profit & Loss): how much you’re up or down as price moves.
Liquidation: if losses get too close to your collateral, the system closes the position to prevent going negative.
Funding: a periodic payment between longs and shorts that helps keep the perp price aligned with the spot/index price (you may pay or receive).

What “perps on Hyperliquid” means in the Terminal

When you trade perps in HyperSwap Terminal, execution is powered by Hyperliquid’s onchain trading infrastructure (perps + spot are core use cases). Hyperliquid positions itself as liquidity infrastructure that apps (like trading terminals) can build on.

Quick example:

If BTC is $50,000 and you open:

Long 10x with $100 collateral → you’re controlling about $1,000 of BTC exposure.

If BTC moves +2%, your position is roughly +$20 (before fees/funding). If it moves -2%, roughly -$20. With enough adverse move, you risk liquidation.

Risk note (read this)

Perps are powerful but risky: leverage magnifies both gains and losses. Start small, use TP/SL, and monitor liquidation price.