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Futures and perpetuals: bigger exposure, faster losses
A futures position can be far larger than the cash behind it. That magnifies gains and losses alike.
What is the position?
A futures contract gives exposure under contract terms rather than ownership of the spot asset. Margin is collateral posted to support the position. Leverage means the contract exposure exceeds that collateral. If losses consume too much margin, the venue can require more funds or close the position; this is liquidation. The CFTC warns that a customer can lose more than the initial deposit. CFTC ↗
A perpetual has no fixed expiration date. Periodic funding payments can help align its price with the underlying spot price; funding is another cost or receipt, not free yield. The CFTC described the U.S. listing of a regulated bitcoin perpetual in May 2026, so a blanket claim that U.S. perpetuals are unavailable would be wrong. CFTC ↗
Where you can trade them depends on the venue
U.S. residents should not infer that an offshore platform is authorized to solicit them. The CFTC says foreign firms soliciting U.S. customers generally need registration, with some exemptions, and warns that unregistered offshore firms may offer fewer protections. Check the product and venue's current eligibility and registration; this lesson cannot determine an individual's legal access. CFTC ↗
Sources
Examples marked made-up numbers are invented. Nothing in this lesson is a recorded CouchChange result or a recommendation.
Try it
A perpetual position is open for a month with little price change. Can its cash result still change?
Think it through, then open an answer
Yes. Funding, fees and margin rules can change the position’s economics even without a large spot-price move.