Perpetual Contracts
Perpetual contracts (also known as perpetual futures) are a type of derivatives product that allow users to trade the price movement of an asset without owning the asset itself.
They are one of the most commonly used instruments in crypto markets due to their flexibility and continuous trading nature.
What Makes Perpetual Contracts Different?
Unlike traditional futures contracts, perpetual contracts:
Do not have an expiration date
Can be held for an unlimited period of time
Track the price of the underlying asset through a funding mechanism
This allows users to open and close positions at any time without worrying about contract settlement dates.
Long and Short Positions
Perpetual contracts allow users to trade in both market directions:
Long (Buy): Profit when the price goes up
Short (Sell): Profit when the price goes down
This enables trading opportunities in both rising and falling markets.
U-Margined Perpetual Contracts
6MM supports U-margined perpetual contracts, which means:
Trades are margined and settled in stablecoins (such as USDT)
Profit and loss (PnL) are calculated in stablecoins
Users do not need to hold the underlying asset
This model simplifies accounting and reduces exposure to asset price volatility outside of trading positions.
Leverage Explained (For Beginners)
Leverage allows users to control a larger position with a smaller amount of capital.
For example:
With 10× leverage, a user can open a position worth 10 times their margin
A small price movement can result in a larger profit—or loss
Important: Higher leverage increases both potential returns and liquidation risk.
Funding Rate (Why It Exists)
Because perpetual contracts never expire, they use a funding rate to keep prices aligned with the spot market.
Funding is exchanged periodically between traders
If the funding rate is positive:
Long positions pay short positions
If the funding rate is negative:
Short positions pay long positions
Funding fees are not charged by 6MM and are paid directly between market participants.
When Do You Make or Lose Money?
Your profit or loss depends on:
Entry price vs. exit price
Position direction (long or short)
Position size and leverage
Trading fees and funding payments
All calculations are updated in real time while positions are open.
Why Trade Perpetual Contracts on 6MM?
No contract expiration
Stablecoin-based margin and settlement
Institutional-grade risk control
Seamless integration via partner platforms
Perpetual contracts on 6MM are designed to be powerful, flexible, and accessible, even for first-time traders.
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