Definition ∞ Perpetual Futures Markets are a type of derivatives market in digital assets that allows traders to speculate on the future price of an asset without a predetermined expiration date. These contracts utilize a funding rate mechanism to ensure their price remains closely aligned with the underlying spot market. They offer continuous trading opportunities.
Context ∞ Perpetual futures markets are exceptionally popular in cryptocurrency trading, providing substantial leverage and continuous trading access. Their activity, especially metrics like open interest and funding rates, furnishes key insights into market sentiment and potential price movements, often contributing to market volatility. News frequently analyzes these markets for indications of bullish or bearish trends.