Perpetual futures (“perps”) are futures contracts with no expiry. They are the most traded crypto instruments, and the reason crypto-native prop firms can offer 24/7 markets with exchange-grade liquidity. Two mechanics make them different from spot or CFDs: the funding rate and leverage.
How perpetuals track the spot price
Because perps never expire, exchanges use a periodic funding payment to keep the contract close to the spot index. When the perp trades above spot, longs pay shorts; when it trades below, shorts pay longs. On major exchanges funding is usually exchanged every eight hours, sometimes more often during volatility.
Funding rates on your P&L
Funding is small per interval but adds up on positions held for days. A 0.01% rate every eight hours is about 0.03% a day — on a $50,000 position, roughly $15 a day. In strong trends rates can be several times higher.
On a prop account, funding affects account P&L just as it would on an exchange. On QATS the trade journal separates execution P&L from account P&L, including funding, so you can see what the position cost to hold.
Leverage on a prop account
Prop firms cap leverage by asset class. QATS Crypto allows up to 20× on BTC and ETH, 10× on large caps and 5× on other coins. Leverage limits how large a position can be; your risk per trade should still come from the stop distance and the drawdown, not from the maximum leverage.
Liquidation vs the drawdown limit
On an exchange, the main risk is liquidation. On a prop account, the daily and maximum loss limits are reached long before an exchange would liquidate you. Plan stops around the firm’s floor, not the exchange liquidation price.
Mark price, last price and your P&L
Exchanges show two prices for every perpetual: the last traded price and a mark price derived from the spot index. Exchanges typically use the mark price for liquidations and unrealised P&L so that one large trade cannot trigger a cascade. Prop firms choose one of them to measure your account, and it matters around volatile candles and thin weekend books.
On QATS Crypto accounts, P&L is valued at the last traded price from the market data feed. Check which price your firm uses before placing stops close to the daily or maximum loss floor.
Order types that matter on perpetuals
- Limit orders: control your entry and avoid paying the spread in fast markets.
- Stop-market orders: guarantee the exit but can slip in a gap — size for that slippage.
- Reduce-only orders: make sure take-profit and stop orders can only close a position, never flip it.
- Protective orders attached to the entry (stop loss and take profit): the simplest way to keep every trade inside your risk plan.
Perpetuals vs crypto CFDs
| Exchange perpetuals | Crypto CFDs at forex prop firms | |
|---|---|---|
| Trading hours | 24/7 | Often 24/7, with weekend spread widening or holding rules |
| Leverage | Higher, tiered by coin | Often 1:2 to 1:5 |
| Funding / swap | Funding rate every few hours | Overnight swap set by the broker |
| Price source | Exchange order book | Broker or liquidity-provider feed |
| Coin selection | Dozens of perps | Often a handful of majors |
Frequently asked questions
01Do I pay funding on a prop firm account?
On firms that model real perpetuals, funding is applied to open positions as on the exchange. Check whether your firm includes funding in account P&L.
02Which crypto pairs can I trade on QATS?
QATS Crypto evaluations currently include 17 USDT perpetuals, among them BTC, ETH, SOL, XRP, BNB and DOGE. The in-platform instrument catalog is the source of truth.
03What does a positive funding rate mean?
The perpetual trades above the spot index, so long positions pay shorts at each funding interval.
Educational content, not investment advice. QATS evaluations and initial funded accounts are simulated; payouts depend on eligibility, verification and the applicable agreement.