> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tradealpha.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Perpetual Futures

> Perpetual futures are contracts that track a stock's price without expiry — letting you go long, short, and use leverage without owning the underlying.

A **perpetual futures contract** (or "perp") lets you bet on the price of an asset — like a US stock — without ever owning the asset. Unlike traditional futures, perps **don't expire**: you can hold them as long as you meet the margin requirements.

## How is trading a perp different from buying a stock?

|                       | Buying a stock         | Trading a perp on Alpha |
| --------------------- | ---------------------- | ----------------------- |
| Do you own the stock? | Yes                    | No                      |
| Get dividends?        | Yes                    | No                      |
| Voting rights?        | Yes                    | No                      |
| Can use leverage?     | Limited                | Yes, up to 100x         |
| Can short easily?     | No (margin required)   | Yes                     |
| Trades 24/7?          | No (market hours only) | Extended hours          |

## What stocks can I trade?

Perps on major US stocks. The full list is available in the app under **Markets**.

## Is the perp price the same as the real stock price?

The perp price tracks the underlying stock closely but can deviate slightly because it's set by supply and demand on the exchange. The **funding rate** helps keep it aligned.

## What is a funding rate?

A small periodic payment between long and short traders that keeps the perp price close to the actual stock price.

* **Positive funding:** longs pay shorts
* **Negative funding:** shorts pay longs

<Tip>
  Funding is paid on a regular interval (typically every 8 hours). The current rate is shown on each market in the app.
</Tip>

## Why trade perps instead of stocks?

* **Leverage:** amplify gains (and losses) with a smaller capital outlay
* **Easy shorting:** no share borrowing, no borrow fees
* **No expiry:** hold positions as long as you maintain margin
* **Extended hours:** trade outside traditional US market hours