Disclaimer: This content is for general educational purposes only, is not financial advice or a solicitation, and is not for UK audiences. Perpetual futures are high risk of loss and not suitable for everyone.
Introduction to perpetual futures
Perpetual futures let you trade on the price moves of cryptocurrencies without actually owning the tokens, and there’s no expiration date. You can keep a position open as long as you want, provided you aren’t liquidated.
In simple terms:
You pick the direction you think the token’s price will go. Long = price goes up. Short = price goes down.
You choose how much leverage to use: up to 40x with MetaMask Perps through Hyperliquid (optional)
You set your stop loss and take profit orders
For beginners, MetaMask’s self-custodial wallet can be a secure way to access decentralized finance (DeFi) and explore perpetuals. MetaMask Perpetual Futures trading through Hyperliquid offers a straightforward, two tap interface to get started once your wallet is connected.
Key concepts of crypto perpetual futures
Before you trade, here are some basic perps terms to know::
Margin: Your collateral, AKA the amount of money you deposit when you make your trade. If losses eat too much of it, the position can be closed (liquidated) by the platform.
Leverage: Lets you control a bigger position with a smaller deposit. For example, using a 5x leverage means a $100 deposit controls a $500 position. Gains as well as losses are amplified with leverage.
Funding rate: A small fee paid between long and short traders, usually every 8 hours, to keep perp prices near the spot price. You may pay or receive it.
Open interest: How many perp contracts are currently open across the market.
Stop loss: An automatic order to close your trade if the price moves against you past a level you set. MetaMask will automatically close your position when you are liquidated, so you cannot lose more than your margin.
Liquidation: When losses eat too much of your margin collateral, the platform automatically closes your position to prevent further losses.
Take profit: An automatic order to lock in gains when price reaches your set target.
How crypto futures work
Perpetuals behave like futures without the end date. A basic trade looks like this:
Open a position: Choose long (think price up) or short (think price down).
Set leverage and margin: Pick your leverage (or skip it) and deposit collateral.
Pay/receive funding: Every few hours, you’ll either pay or receive a small funding amount.
Trade 24/7: Markets never close, and prices track the underlying spot market.
There are some key differences from traditional perpetuals and futures that are also important to note:
Traditional futures have expiry dates; crypto perpetuals do not.
Perps use the funding rate to track spot prices instead of expiring and settling on a schedule.
You’ll see similar concepts (margin, leverage) but perps trading can be done fully onchain with self-custody using MetaMask via Hyperliquid.
Understanding leverage and margin requirements
Leverage lets you control a larger position with less margin, but it increases your risk. Example: 5x leverage on $1,000 opens a $5,000 position. Margin is your collateral; if losses are too large, liquidation can occur.
Leverage | Margin deposited (collateral) | Position size |
2x | $1000 | $2000 |
5x | $1000 | $5000 |
10x | $1000 | $10000 |
40x | $1000 | $40000 |
Simple rule of thumb:
Lower leverage = more breathing room during market moves.
Higher leverage = tighter room for error and faster liquidations.
Choosing the right platform for perpetual futures trading
Here are two common ways beginners get started:
Trading perps on MetaMask via Hyperliquid
Open a trade inside MetaMask: You can trade perps directly on MetaMask Mobile App via Hyperliquid; you do not need a separate account on another exchange or platform.
Two-tap interface: After connecting your wallet, opening a trade position is as simple as funding with any EVM token, selecting long/short, and confirming.
Self-custody: You stay in control of your assets and approvals.
Beginner-friendly: Clear flows, fewer steps, and no juggling multiple accounts.
Using perpetual futures on an exchange
Centralized exchanges (CEXs): Often require account creation and Know Your Customer (KYC—proof of identity documentation and individual risk assessment.) You deposit funds onto the exchange.
DeFi protocols (onchain): Connect your wallet and trade directly, similar to using MetaMask Perps via Hyperliquid; interfaces and features vary.
What to compare: Liquidity, fees/funding, available pairs, risk controls (stop loss/take profit), and support.
Always verify platform security and compliance before depositing your funds.
Step-by-step guide to placing your first perps trade
If you choose to place a perp trade, here’s a simple flow:
Open MetaMask Mobile App to get started
Deposit funds into your Perps account using any token on any EVM network.
Choose long (up) or short (down).
Set leverage and margin (or keep it low/none as you learn). Check out MetaMask Support’s leverage calculator tool.
Add risk controls: set a stop loss and take profit.
Confirm and place your order.
Monitor your position and adjust as needed.
Using MetaMask Perps: After connecting your wallet, the interface is designed so you can place a trade in just two taps—pick your direction and confirm. That’s it.
Monitoring and managing your open positions
Track your positions:
Watch your margin and note funding rate changes.
Be mindful of market volatility; moves can happen fast.
Close or adjust if conditions change or your rules trigger.
Best practices for safe and secure trading
Protect your funds and data:
Use strong, unique passwords and enable two-factor authentication.
Store your seed phrases and private keys offline; consider a hardware wallet.
Keep MetaMask, related apps, and operating systems up to date.
Verify URLs and watch for phishing.
Trade on reputable, secure platforms.
Practice with demos when available; leverage choices are personal and involve risk.
Use MetaMask’s built-in security features and, when possible, trade perps on MetaMask via Hyperliquid to stay in self-custody.
Crypto perpetual futures offer around-the-clock trading and portfolio diversification within DeFi. MetaMask’s self-custodial wallet now lets you trade perps entirely within MetaMask via Hyperliquid using a simple interface—helping you stay secure and in control as you explore the evolving world of crypto trading.
Download MetaMask or update to the latest version to start trading perps.
Need more help? We got you. Check out our Perps FAQs.
