Perpetual Futures vs Futures: 9 Differences That Matter
Updated · 3 min read
The core difference: traditional futures expire on a set date, while perpetual futures never expire. Dated futures converge to spot at expiry, so holding them costs the basis and a roll into the next contract. Perps stay near spot through funding payments between longs and shorts, so holding them costs (or earns) the funding rate instead.
- Futures: fixed expiry, settle physically or in cash, you roll to keep exposure. Perps: no expiry, no settlement, no roll.
- Futures price tracks spot through basis convergence; perps track spot through funding payments.
- Traditional futures trade on regulated exchanges like CME; most perps trade on offshore exchanges and DEXs, 24/7.
- US-regulated perpetual-style futures have existed since July 21, 2025 (Coinbase Derivatives).
- Futures prop firms (CME) and perps prop firms (crypto) use different rules, platforms and payout rails.
Side-by-side comparison
| Traditional futures | Perpetual futures | |
|---|---|---|
| Expiry | Fixed date (monthly or quarterly) | None |
| How price tracks spot | Converges at expiry (basis → 0) | Funding payments every 1h or 8h |
| Cost of holding | Basis / roll cost (contango or backwardation) | Funding rate, paid or received |
| Settlement | Physical delivery or cash at expiry | Continuous mark-to-market; no final settlement |
| Trading hours | Exchange sessions (CME ≈ 23 hours, 5 days) | 24/7 for crypto |
| Leverage | Set by exchange margin (e.g. SPAN) | You choose, up to the venue cap (3x–100x+) |
| Contract size | Standardized (CME Bitcoin = 5 BTC; Micro = 0.1 BTC) | Usually 1 unit of the asset, tradable in tiny increments |
| Where | CME, ICE, Eurex, Coinbase Derivatives | Binance, Bybit, OKX, Hyperliquid and other DEXs; Coinbase US |
| US regulation | CFTC-regulated | Mostly offshore; US perpetual-style futures since 2025 |
Expiry and rolling
A dated futures contract has a last trading day. If you want to keep exposure past it, you close the expiring contract and open the next one. That's a roll, and it has a cost: the price difference between the two months plus fees. Perps remove this step completely, which is a big reason they took over crypto trading.
Basis vs funding: the cost of holding
Dated futures usually trade above spot when markets are bullish (contango). The gap is called the basis, and it shrinks to zero at expiry. A long futures position effectively pays that premium over the life of the contract.
Perps charge the same economic cost in small pieces. When the perp trades above spot, the funding rate is positive and longs pay shorts every interval. Over a year, funding and futures basis tend to reflect similar demand for leverage. Traders run 'cash-and-carry' or funding-capture trades on both. See basis trading and funding arbitrage.
Which is better for day traders?
- Perps win on flexibility: 24/7 markets, tiny position sizes, no roll, and funding is negligible for intraday holds.
- Futures win on regulation, clearing-house protection and, in the US, tax treatment (CME futures fall under Section 1256 60/40 rules; offshore perps generally don't).
- For swing trades held for weeks, compare the cumulative funding on a perp against the basis on the next dated contract.
Futures prop firms vs perps prop firms
Futures prop firms (Topstep, Apex, MyFundedFutures and others) run CME products through platforms like Rithmic and Tradovate, with trailing end-of-day drawdowns and session hours. Perps prop firms run crypto perps on Bybit, Hyperliquid or their own terminals, 24/7, with daily loss limits reset at a fixed UTC time. The two worlds are merging. MyFundedFutures launched a perps sister brand, MyFundedPerps, in September 2026. See futures prop firms vs perps prop firms.
Frequently asked questions
Is a perpetual swap the same as a perpetual future?
Yes. 'Perpetual swap', 'perpetual future', 'perpetual contract' and 'perp' all describe the same instrument.
Why don't perpetual futures expire?
Because the funding mechanism does the job expiry does in normal futures: it keeps the contract price anchored to spot, so no settlement date is needed.
Are perpetual futures riskier than regular futures?
The price exposure is the same. Perps tend to be traded with higher leverage, around the clock, and mostly on less-regulated venues, so the practical risk is usually higher.
Can I trade perpetual futures in the US?
Yes, on CFTC-regulated venues. Coinbase Derivatives listed nano BTC and ETH perpetual-style futures on July 21, 2025. Most offshore perp exchanges block US users.
Sources
- Wikipedia — Perpetual futures
- Hyperliquid Docs — Funding
- Coinbase — US Perpetual-Style Futures 101
- BitMEX — Announcing the launch of the perpetual XBTUSD leveraged swap (2016)
Educational content, not financial advice. Perps and prop evaluations are high-risk; firm rules change, so check each firm's current terms.