All lessons
Spot, futures and perpetual contracts
Holding an asset and holding a contract tied to its price are different promises. Start by asking what you actually own.
Distinguish asset ownership from contract exposure.
In a simple spot purchase you obtain an asset or a custodial claim to it. A derivative gives contractual exposure defined by its specifications. It need not transfer the underlying token to you, even when its price follows that token closely.
A futures contract normally has a specified expiry and settlement process. A perpetual contract generally has no fixed expiry and often uses funding transfers to help align its price with a reference. Product names do not replace reading the actual contract rules.
Compare contract size, collateral, settlement currency and payoff structure. Linear and inverse contracts can produce different calculations. Trading a contract may introduce leverage, forced liquidation and costs beyond spot trading. This lesson explains mechanics through paper examples; it does not require opening a derivatives account.
Let’s use numbers · hypothetical example
Hypothetical: one linear contract represents 0.1 token. Ten contracts represent exposure to 1 token. If price changes by 100 quote units, gross contract P&L changes by 100 under these assumptions, before fees and funding. Margin paid is not the same as exposure.
Keep in mind
Contract losses can occur without owning or transferring any token, and protections vary by product.
Your turn
Write a comparison of expiry, ownership, exposure and settlement for three fictional products.
A quick check before we move on
Does a perpetual position necessarily mean owning the token?
- Only during weekends
- No
- Yes
Check answer
No It is a contract whose rights and payoff follow its specifications.
Sources and further reading
Content reviewed: 29 October 2026
Educational material with hypothetical examples. Trading can cause substantial losses. A course, pattern, stop order or past result cannot guarantee a profit or limit every loss. Practise in simulation and check current rules and product terms in your jurisdiction.