You call Bitcoin’s next move correctly. How much do you make? With perpetual futures, the answer depends on more than the price change. Your trade size, leverage and costs all affect the result. 

That flexibility comes with a tradeoff. Leverage can magnify gains and losses, and keeping a position open can involve ongoing funding payments. 

Here’s how perps work, what they cost, and how margin and risk controls affect your trade.

What is a perpetual future?

A perpetual futures contract or “perp” lets you trade an asset’s price direction. You do not own the underlying asset. Instead, you trade its price movement.

Unlike traditional futures or options, perps have no expiration date. Your position stays open until you close it manually or it hits your take-profit or stop-loss level.

Think of it as another way to act on your edge. If you have a view on where Bitcoin price is going, you can potentially profit on it with perps.

How to go long or short

Every perp trade starts with a direction. If you think the price is going up, you go long. If you think it’s going down, you go short.

In traditional markets, shorting means borrowing, paying local fees, and sometimes getting rejected entirely if the asset is “hard to borrow.” Perps skip all of that. A bearish view is just as easy to trade as a bullish one.

How to amplify your position 

Leverage is a multiplier on your position size. Instead of putting up the full value of a trade, you deposit a fraction of it called margin, and the platform covers the rest. For example: 

$500 at 5x leverage gives you a $2,500 position. Your margin is 20% of the position.

The tradeoff is straightforward. Leverage amplifies movement in both directions. A 2% price move on a 5x position is a 10% gain or a 10% loss. That’s why risk controls such as limit orders are important.

What’s the cost of holding a position?

Holding a position isn’t free in the same way taking out a loan isn’t free. 

The primary cost is the funding rate: a small payment between traders, typically every eight hours, for as long as a position is open. 

When more traders are long than short (or vice versa), the crowded side pays and the other side collects. This is a payment between longs and shorts to keep prices aligned, not a fee paid to OG.com. All fees on OG.com are disclosed before you trade.

How to manage your risk before you trade

Two tools let you control how a trade ends: stop-loss and take-profit. A stop-loss closes your position if the price moves against you past a level you set. A take-profit does the opposite: it locks in your gain when the price hits your target.  

Setting both when you open a position ensures you never lose more than you’re comfortable with, and that you can profit automatically. This is how traders hold positions without watching charts around the clock. 

One more term to know: liquidation. If losses eat through your margin and no stop-loss is in place, the platform closes your position automatically to prevent your account from going negative. A stop-loss is the simplest way to avoid reaching that point.

How perps compare to other financial instruments 

Perps belong to the same broad category as options, margin trading, leveraged exchange traded funds (ETFs) and contracts for difference (CFDs): they all give you leveraged exposure to an asset’s price. But they differ in key ways.

Perps don’t expire, don’t decay, and let you short in one tap. The tradeoff is the funding rate – a variable cost that options and ETFs don't have.

OG.com also offers event contracts, where you trade on a specific outcome, for example, such as whether Bitcoin will finish above a set price on Friday. Your payout depends on whether that outcome happens. 

Start trading perps on OG.com

OG.com’s derivatives operate under CFTC oversight, the same federal regulator that oversees major U.S. futures exchanges. Getting started takes a few steps:

1. Open and verify your OG.com account. Standard identity verification, same as any regulated U.S. financial platform. You can use both our web platform and the mobile app. 
2. Fund your account. Deposit the amount you plan to use as margin.
3. Pick your asset and leverage. Select a perp, then set your position size and leverage.
4. Set your risk controls and trade. Add a stop-loss and take-profit, then open your position. Tap “Price up” to go long and “Price down” to go short. 

All fees are disclosed before you trade. No hidden spreads, no surprises after you open a position.

FAQs about perpetual futures

What is a perpetual contract?

A perpetual contract or perp is a derivative that tracks an asset’s price with no expiration date. You can go long or short with leverage without owning the underlying asset. Your position stays open until you close it or it hits your stop-loss or take-profit level.

How do perps work?

You deposit an initial margin of your trade and choose a direction. Your position’s value moves with the underlying asset. Instead of expiring, it stays open indefinitely. You pay or receive a funding rate – a small periodic payment between traders based on market demand – for as long as the position is open.

What is leverage in perps trading?

Leverage lets you open a larger position than your deposited capital. For example, $500 at 5x leverage gives you a $2,500 position. This amplifies both gains and losses; price moves affect your account faster than an unleveraged position.

What is the funding rate?

It's the periodic payment between traders to hold a perp position. The rate is variable and based on demand between long and short traders. You may receive payments if you are positioned against the crowded side of the market.

What is a margin call?

A margin call notifies that your position’s losses have reduced your account balance to the minimum required to keep the position open. It indicates you must add funds or reduce your position. Setting a stop-loss is the most direct way to avoid a margin call.

What is liquidation, and how do I avoid it?

Liquidation is the automatic closing of a position when losses consume your margin. This prevents your account from going negative. Set a stop-loss when opening a trade to avoid liquidation.

Can I lose more than I deposit?

Not under normal conditions, but rare market events carry risks. Controls such as stop-losses close positions before losses exceed margin. However, in fast or illiquid markets, execution can occur at a worse price than the trigger level, which can result in a negative balance.

Can you short with perps?

Yes. You can open a short position in one tap without borrowing the underlying asset or paying borrowing fees.

How do perps compare to options, CFDs, or leveraged ETFs?

Unlike traditional futures, perps have no expiration date. They also avoid the time decay associated with options and, unlike leveraged ETFs, do not rebalance daily. Although CFDs work in a similar way, eligible U.S. retail traders can access perps through OG.com.

How do I get started?

Create and verify your OG.com account, fund it, select an asset, set your leverage, and open your position. Ensure you set a stop-loss to manage your risk.

Are perps on OG.com regulated?

Yes. OG.com’s derivatives operate under CFTC oversight.

Important Information: OG.com provides technology in order to onboard and trade products on OG.com’s CFTC-regulated exchange and clearinghouse: North American Derivatives Exchange, Inc., which does business under the brands OG.com Markets and OG.com Prediction Markets, as well as, through OG.com’s CFTC-registered Futures Commission Merchant (Foris DAX FCM LLC or OG.com Broker).

OG.com Markets offers both prediction market event contracts (Prediction Markets Contracts), as well as margined derivatives, including single stock futures and perpetuals (Futures) (Prediction Markets Contracts and Futures are collectively referred to as OG.com Markets Products). Prediction Markets Contract can be accessed directly on OG.com Markets or through a CFTC-registered FCM, including OG.com Broker, or an Introducing Broker (IB). Futures must be accessed through a CFTC-registered FCM, including OG Broker or an IB.

Trading OG.com Markets Products involves risk and may not be appropriate for all. By trading you risk losing your cost to enter any transaction, including fees. You should carefully consider whether trading OG.com Markets Products is appropriate for you in light of your investment experience and financial resources. Any trading decisions you make are solely your responsibility and at your own risk.