What should equity and futures traders unlearn before trading perps?
◇ ON THIS PAGE
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◇ FAQ
How are crypto perps different from stock index futures?
Crypto perps have no expiry or quarterly roll — you hold until you close or get liquidated. P&L and margin use mark price continuously, not daily settlement to a cash index. Funding replaces much of the carry embedded in traditional futures basis, and venues run 24/7 with no session close.
Is perp funding the same as the roll cost in futures?
Similar economic role, different mechanism. Traditional futures embed carry in the basis until roll; perps charge explicit periodic funding between longs and shorts. Funding resets with positioning and can flip sign hourly — you model it as a recurring cash flow, not a one-time roll spread.
Why don't perpetual futures expire?
The funding schedule pulls the contract toward spot so it does not drift like a dated future would without convergence pressure. Exchanges chose "perpetual" because retail and desks wanted continuous exposure without roll operational risk — at the cost of persistent carry you must budget.
If you trade ES or NQ, you already know margin, notional, and gap risk. Crypto reuse the vocabulary but swap several conventions — most importantly, funding instead of roll and mark instead of settlement.
◇ THE MECHANIC
TradFi habit
Perp convention
Quarterly expiry and roll
No expiry; hold until exit or liquidation
Basis / cost of carry in the future price
Explicit transfers on a fixed schedule
Settlement vs last
for P&L and liquidation; last for fills
Session close, circuit breakers
24/7; gaps any hour
Clearinghouse margin model
Venue-specific / rules
You are still long delta. You still post collateral. What changes is how carry is billed and which price kills you.
◇ FUNDING VS COST-OF-CARRY
In index futures, fair value ties the future to spot plus interest minus dividends until expiry. You express carry by trading the spread and rolling.
In perps, carry is transparent: longs pay shorts when funding is positive (typically), each interval. The rate moves with crowding and basis. There is no roll day — there is every funding tick.
◇ WORKED EXAMPLE
Rough carry comparison · $100k notional long
Perp funding is a line item every interval; futures carry hides in basis until roll
ES-style mental model
Perp (e.g. +0.01%/h)
Carry visibility
Embedded in future vs spot basis
Explicit funding payment
Typical horizon
Roll every ~3 months
Hourly / 8h forever
Flat month, long crowd
Basis may compress at roll
~$720/month at 0.01%/h on $100k notional
See Lesson 03: Funding for the full schedule. On Hyperliquid, intervals are hourly; on CFTC-regulated venues like Kalshi perps, 8-hour settlement is common. Read the clock before you hold.
◇ MARK VS SETTLEMENT
Stock futures settle to an index print. Intraday, your broker marks you to market, but the cultural anchor is settlement.
Perps never "settle" in that sense while open. and liquidation track mark continuously. The ticker on CNBC-equivalent apps often shows last; your liquidation does not.
That is the same lesson as NAV vs last on a thin equity — but always on (Lesson 02: Three prices).
◇ MARGIN AND LIQUIDATION
Familiar concepts apply:
Leverage scales notional per dollar of margin (leverage guide).
Maintenance is a hard floor — often instant liquidation, not a call you can meet with a wire.
What surprises equity traders: 10× on BTC is not "10× on SPY." Volatility and 24h gaps change how fast you hit maintenance. The August 2024 yen-carry replay is a TradFi shock propagating into crypto perps — same margin math, different session rules.
◇ COUNTERPARTY AND REGULATION
ES clears through CME and your FCM. Crypto perps may clear through an offshore exchange, a , or a CFTC-regulated retail venue. Counterparty and rule set are not interchangeable (Lesson 05: Venues).
