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Perpetual futures
Perpetual futures are contracts that let you bet on a coin's price going up or down without owning it and without an expiry date. Instead of expiring, they use regular funding payments between buyers and sellers to keep the contract price close to the coin's market price.
What it means for you. Perpetuals are usually traded with leverage, so a small price move can wipe out the margin you posted and close your position. You also pay or receive funding for as long as the position stays open, which can add up over weeks. A regulator warns leveraged traders can lose more than they put in.
Sources: Hyperliquid docs: Contract specifications, CFTC: Understand the Risks of Virtual Currency Trading, Hyperliquid docs: Funding · checked 4 October 2026
Spot trading
Spot trading is buying or selling an asset for immediate delivery at the current price, so the buyer gets the asset itself rather than a contract tied to its price. On a crypto exchange, a spot trade swaps one currency for another, such as dollars for a coin, without borrowing.
What it means for you. Bought on the spot market with your own money, the most you can lose is what you paid: there is no margin call and no forced liquidation. If the coin stays on the exchange, the exchange holds it for you; withdrawing it to your own wallet is a separate step that can carry a fee.
Sources: CFTC Glossary, Investor.gov: Stock Purchases and Sales: Long and Short · checked 4 October 2026