Perpetual futures (often called “perps”) have become one of the most popular derivatives products in the world, particularly in cryptocurrency trading. After years of being available primarily on offshore exchanges, perpetual futures are now becoming available to US traders through regulated providers such as Kalshi and Coinbase.
This guide explains what perpetual futures are, how they work, funding rates, legality in the US, and where you can trade them.
Where Can You Trade Perpetual Futures In The USA?
Following recent regulatory approvals, US traders can now access regulated perpetual futures through:
Kalshi: CFTC Regulated Perpetual Futures
Kalshi became the first US-regulated exchange to launch perpetual futures after receiving CFTC approval. The company initially launched crypto perpetual futures, starting with Bitcoin-related products and plans to expand its offering.
Coinbase: Derivatives Trading
Coinbase offers perpetual futures through its derivatives platform. International users have had access to perpetuals for some time, while US traders now have access to regulated perpetual-style futures products and expanding perpetual offerings following CFTC approvals.
Coinbase offers perpetual futures through its derivatives business and international derivatives exchange. Traders can access perpetual futures products on cryptocurrencies with leverage and 24/7 trading. Coinbase advertises leverage of up to 50x on certain products.
What Are Perpetual Futures?
Perpetual futures are derivative contracts that allow traders to speculate on the future price of an asset without actually owning it. Unlike traditional futures contracts, perpetual futures have no expiry date, meaning positions can theoretically be held indefinitely.
Traditional futures contracts have a fixed settlement date. For example, a trader may buy a Bitcoin futures contract that expires in September. Once that date arrives, the contract settles and the position closes.
Perpetual futures remove that expiry date entirely. Instead, they are designed to continuously track the price of the underlying asset through a mechanism known as a funding rate. This allows traders to maintain exposure for as long as they wish, provided they meet margin requirements.
The Commodity Futures Trading Commission (CFTC) approved the first perpetual futures contract for listing on a regulated US exchange in 2026, marking a significant milestone for the US derivatives market.
How Do Perpetual Futures Work?
Perpetual futures work similarly to traditional futures contracts but with three key differences:
1. No Expiry Date
Unlike conventional futures, perpetual contracts do not expire or require traders to roll positions into a new contract every month or quarter. Positions remain open until the trader closes them or is liquidated due to insufficient margin.
2. Margin And Leverage
Traders can use leverage to control larger positions than their account balance would otherwise allow.
For example:
- Deposit: $1,000
- Leverage: 10x
- Market exposure: $10,000
This magnifies both gains and losses. Some platforms offer leverage of up to 50x on certain products.
3. Funding Payments
Because perpetual futures never expire, exchanges use periodic funding payments to keep the contract price aligned with the underlying spot market.
When perpetual futures trade above the spot price, long traders typically pay short traders.
When perpetual futures trade below the spot price, short traders pay long traders.
This mechanism encourages traders to take positions that help bring prices back into line with the underlying asset.
Are Perpetual Futures Legal In The US?
Yes. As of 2026, perpetual futures are legal in the United States when offered through properly regulated exchanges and approved by the CFTC.
Historically, perpetual futures were largely unavailable to US retail investors because many popular crypto exchanges offering them operated outside US regulatory oversight. US regulators had concerns around leverage, investor protection, liquidation risks and market integrity.
The regulatory landscape changed in 2026 when the CFTC approved the first US-listed perpetual futures contracts. This opened the door for regulated firms such as Kalshi and Coinbase to offer perpetual futures products to American traders.
However, legality depends on the platform. US investors should only trade perpetual futures through exchanges authorised to offer them within the United States.
What Are Perpetual Futures Funding Rates?
Funding rates are periodic payments exchanged between long and short traders that help keep perpetual futures prices close to the underlying spot market price.
Funding rates are not paid to the exchange. Instead, they are transferred directly between market participants.
Positive Funding Rate
When perpetual futures trade above the spot market price:
- Long traders pay shorts
- Encourages more selling
- Helps reduce the premium
- Negative Funding Rate
When perpetual futures trade below the spot market price:
- Short traders pay longs
- Encourages more buying
- Helps close the discount
Funding rates vary depending on market conditions and can become significant during periods of extreme bullishness or bearishness. On Kalshi, funding payments are charged every eight hours and can materially impact the cost of holding a position over time.
Are Perpetual Futures Suitable For Beginners?
No, perpetual futures are sophisticated financial products that combine leverage, margin requirements and funding costs. While they can be useful for hedging or speculation, they are generally considered higher risk than investing directly in stocks, ETFs or cryptocurrencies.
The ability to trade with leverage means small price movements can generate large profits—but equally large losses. Traders should understand funding rates, liquidation risks and margin requirements before using perpetual futures.