In May 2026, the Commodity Futures Trading Commission (CFTC) approved a bitcoin (BTC) contract with no expiry date for trading on a US-regulated exchange.1 It also said it would review perpetual contracts on other asset classes case by case, which leaves the door open for more to follow.2
For US traders, that makes perpetual futures a product you’re likely to see more of. It also makes them worth understanding before you place a trade, because they come with leverage, round-the-clock trading and a recurring cost that can eat into your returns. Here’s how they work, what they cost and where they can go wrong.
Top pick for low-cost future trading
Top pick for crypto futures trading
Trading with leverage comes with a high risk and may not be suitable for everyone
Top pick for trading tools
A perpetual future (or “perp”) is a futures contract with no expiration date.3 You take a position on an asset’s price and hold it for as long as you want, provided you keep enough money posted to cover it. If you think the price will rise, you go long. If you think it will fall, you go short.
The contract the CFTC approved, listed by Kalshi, is a good example. It’s cash-settled, so no bitcoin changes hands, and it tracks the US dollar price of one bitcoin (BTC) as measured by the CF Benchmarks Bitcoin Real Time Index.1 Positions are marked to market continuously, and the contract trades 24 hours a day, seven days a week, subject to any trading halts the exchange imposes.1
The main difference from traditional futures contracts, including bitcoin futures, is the missing end date.
| Feature | Traditional futures | Perpetual futures |
|---|---|---|
| Expiry | Ends on a set date | None3 |
| Staying near the spot price | Price converges toward spot as the contract nears expiry1 | Funding payments between long and short traders1 |
| Holding a position long term | You roll into a new contract | No rolling needed, according to Kalshi1 |
Because a perp never expires, it needs another way to stay close to the spot price. That’s the job of the funding rate. Traders on one side of the market pay traders on the other at regular intervals, based on the gap between the contract’s price and the spot price.4
Intervals and caps vary by platform. Kalshi settles funding every eight hours and caps the rate at 2% either way per interval.4 Kraken’s US perps settle funding once a day instead.5 Kalshi describes funding as a transfer between traders, not a fee the platform keeps.4
Funding can add up. Kalshi notes that payments can build up on long-held positions, even when the price moves in your favor.4
Perps let you control a larger position with a smaller amount of money, using leverage. Like other futures, they’re secured by margin, a deposit you post to open and hold the position.1 Platforms set their own leverage limits. Kalshi, for example, offers up to 6x on its bitcoin perp.3 There, the higher the leverage you choose, the less initial margin you need.6
Say you want $1,000 of bitcoin exposure at 5x leverage. You’d post $200 as margin.6 That’s how a small amount of money can control a bigger position. It’s also why a small move against you matters more. Leverage amplifies gains and losses by the same factor.7 It’s a different setup from margin trading at a stock broker, so check the terms on your platform.
Perp positions have a maintenance margin, which is the minimum balance needed to keep the position open.6 If your balance falls below it, the exchange can close your position for you. That’s liquidation, and it can happen quickly in volatile markets.7
What happens next depends on the platform. On Kalshi, margin is isolated by default, so a liquidation only affects the margin set aside for that position. Any margin left after the close goes back to your account, and if the position closes at a bigger loss than its margin, the clearinghouse’s risk waterfall absorbs the shortfall.8 Other platforms may handle shortfalls differently, so read the rules before you trade.
They can be, on a regulated exchange. The CFTC’s May 2026 order approves the bitcoin perpetual from KalshiEX, a designated contract market, as a futures contract.1 The order covers that contract and similarly structured ones tied to bitcoin or other digital commodities with deep, active spot markets. It doesn’t extend to other asset classes.1 For those, the CFTC said it will use its case-by-case review process.2
Other providers offer perps too. Kraken lists perpetual futures on Bitnomial for US clients who have unlocked futures trading on Kraken Pro.5 Bitnomial is a CFTC-regulated exchange, and Kraken offers the contracts through NinjaTrader Clearing (doing business as Kraken Derivatives US), a registered futures commission merchant.9
The rules could still change. In June 2026, Chicago Mercantile Exchange (CME) sued the CFTC, asking a federal court to vacate the order and policy statement and declare that these contracts are swaps, not futures.10 Kalshi itself lists regulatory change as a risk that could affect the product’s availability.7
Here’s how the US options stack up, based on what each provider has published. Availability varies, so compare futures trading platforms and crypto exchanges to see what’s offered where you live.
| Provider | Status | Listed on | Contracts | Funding | Max leverage |
|---|---|---|---|---|---|
| Kalshi | Approved by the CFTC in May 20261 | KalshiEX, a designated contract market1 | Bitcoin (BTCPERP)1 | Every 8 hours4 | Up to 6x3 |
| Kraken (via Kraken Derivatives US) | Offered to US clients who have unlocked futures on Kraken Pro5 | Bitnomial, a CFTC-regulated exchange9 | 16, including bitcoin, ether and XRP5 | Once daily, at 3 p.m. CT5 | Not stated in Kraken’s support article5 |
Perpetual futures offer leveraged exposure with no expiry date, but funding costs, liquidation and unsettled rules mean they reward traders who understand the mechanics first. It pays to compare your options before you commit any money.
Compare futures trading platforms
See fees, features and what each platform offers US traders.
Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.
Finder is not an advisor or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.
Finder x Webull $160 Promotion: What You Need to Know
Open a new eToro account through Finder and receive $200 after an eligible cash deposit of $300+. US residents. Limited time only. Terms and conditions apply.
Finder’s eToro Visa Gift Card Reward Promotion (“Promotion”)
Compare futures commissions, precious metals access and account minimums across 9 platforms, including Webull, Robinhood and Fidelity.
Learn how to invest in copper by buying physical copper, investing in copper stocks and ETFs or buying copper futures.
Index options let you speculate on the performance of a market index rather than individual stocks, helping traders hedge against market risk.
Earn stock with SoFi active investing bonuses. See how to get the best SoFi bonus deals here.
UTMA accounts are more flexible and have broader investment options, while 529 accounts are best for education-based savings.
See which brokers offer 24-hour and overnight stock trading — including new additions Moomoo and Public — plus their fees, eligible securities and trading windows.
If you’re new to investing you need to read this.
