Perps Trading Seizes Its Moment

What: Perps trading, a type of derivatives trading, has surged in popularity as investors seek new ways to manage risk and capitalize on market volatility.
Why: The rise of perps trading can be attributed to the increasing demand for flexible and customizable risk management tools, particularly in the wake of the COVID-19 pandemic.
Signal: The recent surge in perps trading has been led by institutional investors, with **$10 billion** in notional value traded in the first quarter of 2026.
Target: Perps trading platforms are expected to continue growing, with some estimates suggesting that the market could reach **$50 billion** in notional value by the end of 2026.
Risk: However, perps trading also carries significant risks, including counterparty risk and liquidity risk, which could impact investor returns and market stability.