Perpetual Futures vs Spot Trading

Feature

Perpetual Futures

Spot Trading

Leverage

Up to 20x

❌ No leverage

Expiry

No expiry (perpetual)

Immediate settlement

Use Case

Short-term speculation, hedging, high-risk strategies

Long-term holding, instant swaps

Risk Level

🔴 High (liquidation risk)

🟢 Low

Order Types

Market, limit, stop, advanced tools

Simple buy/sell

Funding Rate

Applied periodically to balance long/short positions

❌ Not applicable

Slippage

Minimal (optimized for leveraged trades)

Minimal (deep liquidity pools)

Best For

Active/pro traders seeking bigger moves

Investors and casual traders

Example

Deposit $500 → Trade $10,000 with 20x leverage

Swap 1 BNB → USDT instantly

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