Perpetuals, in plain English
Futures, index perps, and stock perps—explained from the ground up. Know what you own, what you pay, and what can go wrong.
A little more clarity.
Prop firms / How can the entry cost be smaller?
You do not need to deposit the full advertised account size. Vest currently lists its smallest Instant account at a $10 one-time fee. It buys access to a trading program where eligible results may earn a payout.
Vest’s terms describe all program accounts, including Instant accounts, as simulated. You can lose the access fee, and buying replacement accounts adds to your own costs. A low entry fee does not guarantee earnings.
How prop firms and Vest workVest Instant / Smallest account example
The fee is not a deposit. The virtual balance is not money you can withdraw, and breaching the loss limit closes the account.
Checked ·Pricing ·Loss limits ·Program terms
USD prices before any discount. Confirm the current price and terms before paying.
The big picture
A stock, a futures contract, and a perp can follow related prices. What you actually hold is different.
| The big pictureSame markets. Different products. | 01 /Index futuresAn exchange-traded contract. | 02 /Index perpsPrice exposure, without an expiry. | 03 /SharesA piece of a company. | 04 /Stock perpsThe stock’s price, without its shares. |
|---|---|---|---|---|
| What are you trading? | A contract tied to a stock-market index. | A perpetual contract tied to an index reference price. | Shares bought outright in a cash account. | A perpetual contract linked to a stock’s price. |
| Do you own shares? | No ownership of the index’s companies. | No ownership of the index’s companies. | Yes. A share represents company ownership. | No shareholder ownership or voting rights. |
| Does it expire? | Yes. Each contract has an expiry. | No scheduled contract expiry. | No contract expiry. | No scheduled contract expiry. |
| What costs matter? | Trading fees, spread, and rolling to a later contract. | Trading fees, spread, and funding payments. | Broker fees, spread, and possible currency/account charges. | Trading fees, spread, and funding payments. |
01 / The big picture
An exchange-traded contract.
02 / The big picture
Price exposure, without an expiry.
03 / The big picture
A piece of a company.
04 / The big picture
The stock’s price, without its shares.
A starting point, not a product recommendation. “Shares” means fully paid cash shares; borrowing and short selling add different costs and risks. Hours, rules, and availability depend on the provider. Sources & scope ↗
Take a closer look at the comparisonA simple path through it
One idea, a few useful words, and no assumed trading knowledge.
02Similar markets. Different contracts, expiry, and holding costs.
03Owning part of a company and trading its price are different things.
04The three things to understand before you consider a trade.
05A smaller upfront fee, a virtual account, and rules to understand before paying.
One idea worth keeping
A perpetual has no scheduled expiry. But trading fees, the gap between buying and selling prices, and funding can still affect your result. Leverage adds another layer of risk.
Understand costs & leverageQuestions you might already have
Short answers first. The guides fill in the detail.
No. A share gives you ownership in a company. A stock perp is a contract linked to its price. Do not assume shareholder rights or dividends; any adjustments depend on the contract.
No. Trading hours depend on the provider and the underlying market. Stock and index perps can have closed periods even when crypto perpetuals are open.
No. Funding can be paid or received, depending on the rate, your direction, and the venue’s rules. The rate can change. Receiving funding does not make a position risk-free.
No. It lets you take more exposure relative to the money supporting the position. Losses can consume that money quickly, and the provider may close the position if its margin requirements are no longer met.