Stock perpetual futures vs crypto perpetual futures: how they differ

Perpetual futures are contracts with no expiration date that seek to track an asset's spot price through mechanisms that include periodic funding payments (Investopedia). The same perpetual futures structure has more recently been extended to individual stocks. Stock perpetual futures, or stock perps, provide leveraged, commonly cash-settled exposure to individual share prices without ownership of the underlying stock and without the contract rolls associated with expiring futures. Most coverage of perps focuses on cryptoassets, which have been the predominant asset class tracked by perpetual futures, and does not explain stock-specific differences such as trading hours, funding behavior, and settlement dynamics. This guide provides a direct, side-by-side comparison of both instrument types.

TL;DR

Stock perpetual futures are commonly cash-settled contracts that track the spot price of an individual stock with no expiration. They provide leveraged long or short exposure without share ownership, with gains and losses settled in the contract's specified currency and a periodic funding mechanism intended to help align the contract price with the underlying stock's reference price.

Crypto perpetual futures provide no-expiry leveraged exposure to cryptoassets such as BTC and ETH. They use similar funding mechanics, but their collateral, volatility, reference-price schedules, and funding-rate behavior can differ from those of stock perps.

Availability of either instrument varies by jurisdiction, venue, and participant eligibility. Stock perps may be less widely available through common retail trading platforms than crypto perps. For a focused comparison of perp-style leverage, margin, and options, see this comparison of leverage structures.

Side-by-side comparison table

Leverage limits and regulatory treatment vary by contract, venue, market conditions, and jurisdiction for both instrument types — the applicable contract specifications and local rules determine what applies in each case.

How funding rates work, and why they differ for stocks

Funding rates are one mechanism used to help keep a perpetual futures contract aligned with the spot or reference price of the underlying asset. Unlike a traditional futures contract that converges toward spot at expiration (CME Group), a perp has no expiry, so periodic funding payments create incentives that can reduce persistent differences between the perp and reference prices (Investopedia).

The core mechanism

In a simplified funding model, one side of the trade pays the other at each funding interval:

• When the funding rate is positive, long-position holders pay short-position holders.
• When the funding rate is negative, short-position holders pay long-position holders.

The precise rate, direction, calculation, and payment interval depend on the contract specifications.

Stock perps vs. crypto perps: key differences in funding

Some stock-perp contract designs include an interest or financing component in addition to a component based on the difference between the perp and stock reference prices. The resulting funding cost may remain positive even when the perp trades close to the underlying stock price, depending on the formula.

Crypto-perp funding rates are often more sensitive to imbalances between long and short demand. During periods of strong bullish or bearish sentiment, funding costs can change substantially.

Funding intervals also vary. Some contracts calculate funding multiple times per day, while others use a daily or different schedule. The applicable contract specifications determine the interval.

Worked example: stock perp funding

Suppose a hypothetical trader holds a long position on a Stock A perp with a notional value of $10,000, and the hypothetical eight-hour funding rate is 0.01%, composed of a 0.005% interest component and a 0.005% reference-price-deviation component.

• Funding payment per interval: $10,000 × 0.01% = $1.00
• Daily cost at three unchanged intervals: $1.00 × 3 = $3.00
• Simple annualized cost if the rate remains unchanged: $3.00 × 365 = $1,095, or roughly 10.95% of the notional position

If the position uses 10× leverage, the initial margin deposit in this simplified example is $1,000. The $3.00 daily funding cost represents 0.3% of that margin per day. Actual funding rates can change at each interval.

Worked example: crypto perp funding

Suppose a hypothetical trader holds a long BTC perp with a notional value of $10,000, and the hypothetical eight-hour funding rate is 0.03%.

• Funding payment per interval: $10,000 × 0.03% = $3.00
• Daily cost at three unchanged intervals: $3.00 × 3 = $9.00
• Simple annualized cost if the rate remains unchanged: $9.00 × 365 = $3,285, or roughly 32.85% of notional

At 10× leverage on a $1,000 margin deposit, that $9.00 daily cost is 0.9% of margin per day. Actual funding rates can rise, fall, or become negative as market conditions change. For a step-by-step walkthrough of how leverage multipliers translate a stock move into a margin return, see how leverage math actually works in a trade.

Stock-perp and crypto-perp funding costs can behave differently because their reference markets, reference-price schedules, financing components, and supply-demand conditions can differ.

Regulatory status

Oversight and the current state of play

The regulatory treatment of perpetual futures depends on the instrument, venue, participant, and applicable jurisdiction. Crypto perps and stock perps may be treated differently because the reference assets and market structures differ.

Availability through a particular venue does not establish that an instrument is available to every participant. Eligibility, access restrictions, and applicable requirements should be assessed under the laws and platform terms relevant to each jurisdiction.

For stock perps, the regulatory picture may involve both derivatives and securities considerations because the underlying asset is a stock. Availability through common retail trading platforms remains limited in many jurisdictions.

What may change

Regulatory frameworks for digital-asset derivatives and stock-linked perpetual contracts continue to develop. Changes in legislation, regulatory guidance, venue authorization, or contract design may affect future availability. Access available in one jurisdiction should not be assumed to extend to participants in another.

Stock perps vs. options: a quick framing

Perps and options provide different forms of leveraged equity exposure and are designed for different purposes. A fuller side-by-side is in Options vs Perpetual Futures for Stocks.

Perps provide continuous, linear exposure to price movements with no expiration and no time decay. The ongoing cost may include a funding rate that accrues while the position remains open.

Options provide nonlinear exposure with a defined expiration date. A long option involves an upfront premium and can lose value through time decay, while its maximum loss is generally bounded by the premium paid (Options Industry Council).

The risk profiles differ as well. A leveraged perp position can be liquidated if margin requirements are no longer met. On most retail platforms with automated liquidation systems, the maximum loss is bounded by the margin posted, although severe volatility or slippage can, in rare cases, cause losses to exceed that amount, depending on the platform's liquidation engine and insurance-fund design.

This comparison of leverage structures discusses perp-style leverage, margin, and options in more detail.

Why stock perps matter for equity traders

Stock perpetual futures pair a no-expiry structure with cash settlement in most contract designs, removing the need to roll an expiring contract. For traders familiar with crypto perps, the stock variant applies similar mechanics to assets affected by earnings reports, macroeconomic data, and sector rotations rather than crypto-native catalysts.

Key structural differences include:

• Volatility profile: Cryptoassets and individual stocks can have materially different volatility patterns.
• Trading hours: A stock perp's trading availability is set by the venue and is often continuous — what generally follows equity-market schedules is the underlying stock's reference price, not the contract itself. Crypto perps are likewise typically available continuously.
• Regulatory access: Availability for both instrument types varies by jurisdiction and venue.
• Funding cost behavior: Funding rates depend on each contract's formula, reference market, and supply-demand conditions.

These differences affect funding, leverage, liquidation risk, and price behavior across the two instrument types.

Key terms

• Perpetual futures (perp): A contract that tracks an asset's price with leverage and no expiration date, so the position can stay open indefinitely.
• Funding rate: A periodic payment between long and short holders designed to keep the perp price near the underlying reference price.
• Notional value: The full dollar value of the position a contract controls, before leverage is applied to the margin.
• Margin: The collateral a trader posts to open and maintain a leveraged position.
• Liquidation: The automatic closing of a leveraged position when its margin no longer meets the contract's requirements.
• Cash settlement: Settling gains and losses in currency rather than by delivering the underlying asset.
• Reference price: The external price, such as a stock's spot price, that a perp contract is designed to track.
• Time decay: The loss of an option's value as its expiration date approaches; perps do not have time decay because they never expire.

Frequently asked questions

What is the difference between stock perps and crypto perps?

Stock perpetual futures track individual equities with no expiration and, on many venues, can be traded even while the underlying equity market is closed — it is the stock's reference price, not the contract, that follows equity trading hours. Crypto perpetual futures track cryptoassets and typically trade continuously. The two also differ in settlement currency, in funding mechanics — stock-perp funding often includes an interest or financing component — and in availability, which varies by jurisdiction and venue.

Can you trade stock perpetual futures?

Availability depends on jurisdiction, venue, and participant eligibility. Stock perps are offered on a limited number of specialized derivatives venues, and availability through a venue does not establish that every participant may access it. Eligibility should be confirmed under the laws and platform terms that apply in each jurisdiction.

How do funding rates differ between stock perps and crypto perps?

Stock-perp funding commonly includes an interest or financing component that can keep funding positive even when the perp trades near the reference price, while crypto-perp funding is driven mainly by the balance of long and short demand and can move sharply during strong market sentiment. Funding intervals also vary by contract — some settle several times a day, others daily.

What leverage is typical on stock perps versus crypto perps?

Neither instrument has a single typical leverage figure — limits vary by contract, venue, market conditions, and jurisdiction. The applicable contract specifications determine the maximum leverage, margin requirements, and liquidation rules for any given market.

How do stock perps compare to options?

Perpetual futures provide continuous, linear exposure with no expiration and an ongoing funding cost, and leveraged positions carry liquidation risk. Options provide nonlinear exposure with a defined expiration and time decay, and a long option's maximum loss is generally bounded by the premium paid. The two instruments are designed for different purposes and payoff structures.

Further reading

For a deeper explanation of leveraged stock exposure, see How Leverage Works on Stocks: Alpha vs. the Top Retail Brokerages. Additional educational material about perps, options, funding, and risk is available in the insights library.

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