What's the Difference Between Crypto Futures and Traditional Futures?
Crypto Futures on Pluang are perpetual contracts with no fixed expiry date, while traditional futures — such as commodity or stock index futures — carry a set expiry and delivery date after which the contract closes out or settles. Crypto Futures trade 24/7, including weekends and holidays, whereas traditional futures trade only during the exchange's set trading hours and close on weekends. Because Crypto Futures never expire, Pluang uses a funding rate exchanged directly between long and short position holders every 8 hours; traditional futures rely instead on the approaching expiry date to pull the futures price into convergence with spot.
| Aspect | Crypto Futures (Pluang) | Traditional Futures |
|---|---|---|
| Contract Type | Perpetual, no expiry date. | Fixed expiry and delivery date. |
| Trading Hours | 24/7, including weekends and holidays. | Set exchange trading hours only, closed on weekends. |
| Price Alignment Mechanism | Funding rate exchanged between long/short holders every 8 hours. | Price converges toward spot naturally as expiry approaches. |
| Margin/Settlement Currency | USDT-margined. | Denominated in the contract's settlement currency. |
| Leverage | Up to 25x on 46 of 49 contracts (10x on BAT, FIL, ZRX). | Set by the exchange and contract specification. |
| Settlement | Cash-settled in USDT, no physical delivery. | Physical delivery or cash settlement at expiry, per contract specification. |
Related questions:
Q: Do Crypto Futures on Pluang ever expire like traditional futures?
No. Crypto Futures on Pluang are perpetual contracts with no fixed expiry or delivery date. Traditional futures have a set expiry date after which the contract is closed out or delivered.
Q: Why don't traditional futures need a funding rate?
Their fixed expiry date does the same job — the price converges toward spot through time decay as expiry approaches. Crypto Futures use a funding rate instead since they have no expiry.
Q: Can I trade Crypto Futures on weekends, unlike traditional futures?
Yes. Crypto Futures trade 24/7, including weekends and holidays. Traditional futures trade only during set exchange hours and close on weekends.
Q: Are contract sizes standardized the same way in both markets?
Both use standardized specifications set by different bodies. Pluang's Crypto Futures offer leverage up to 25x on 46 of 49 contracts, with BAT, FIL, and ZRX capped at 10x.