CFTC Just Opened America’s Stock Market to Perpetual Futures

Futures contracts that track individual US stocks and never expire can now trade on American regulated exchanges. The Commodity Futures Trading Commission (CFTC) cleared these equity perpetual futures on Tuesday, a product Americans previously had to seek out offshore. The catch is leverage. Kalshi, one of the exchanges that filed to list the contracts, lets traders hold a stock position by posting 15.5% of its value, and a Washington reform group warns such positions liquidate automatically in steep sell-offs. How Do Equity Perpetual Futures Work? Ordinary futures expire on a fixed date. Perpetual futures roll on indefinitely, so a trader can hold a position for as long as the margin lasts. A recurring funding payment keeps the contract close to the share price.

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