Perpetual contracts vs owning shares
What a perpetual contract on a US stock is, and what you give up compared with owning the share.
When you buy a share, you own a small piece of the company. A perpetual contract ("perp") is different: it is an agreement whose value follows the share's price. You never own the share.
What you get
- Long or short. Profit if the price rises (long) or falls (short).
- Leverage. Control a bigger position than the money you put down.
- No expiry. Unlike Nifty futures, there's no monthly expiry or rollover. You hold until you close or are liquidated.
- Rupees in, rupees out. Margin, profit and loss are all in ₹.
What you give up
- No votes, no dividends, no shareholder rights.
- Funding: a small hourly payment between longs and shorts keeps the contract close to the share price (lesson 4).
- With leverage, a move against you can wipe out your margin quickly (lesson 3).
| Owning the share | Perpetual contract | |
|---|---|---|
| Go short | No | Yes |
| Leverage | No | Yes, with limits |
| Expiry | None | None |
| Dividends, votes | Yes | No |
| Ongoing cost | None | Hourly funding (either way) |
Try it in the demoA short on Apple, 2×, ₹5,000 margin.
Open the demo ticket →Demo money only. Moveintrade is not live and does not open trading accounts yet. Leverage magnifies losses as much as gains: most retail derivatives traders lose money.