A Guide On Kalshi Perpetual Markets: How They Work

If you’re looking to get a real market trading experience, utilizing Kalshi perpetual futures markets might be of interest to you.

• Kalshi offers perpetual markets where users trade on an asset with no end date
• Users can apply leverage to their contract purchase to create greater standing in the market
• Trade on two dozen different Kalshi perpetual markets like Crypto and precious metals

Instead of trading a contract based on the outcome of an event, with perpetual markets, you are trading on the price of an asset that has no end date. You can ultimately close your position at any point or see your contract close if you run out of funds.

Kalshi perpetual markets are an advanced method of trading with leverage included, multiple daily settlements, and funding rates. There’s plenty of risk involved, but also potential for greater rewards.

Perpetual futures markets can also be used when utilizing the Kalshi promo code WTOP2000. This guide provides you with all you need to know about Kalshi perpetual futures markets.

What are Kalshi Perpetual Markets?

Kalshi perpetual futures markets offer up derivative contracts where users are buying and selling a contract that is attached to a particular asset that has no end result. Users have the option to close their position whenever they choose.

Just like standard contract trading on Kalshi, users will choose whether they believe an asset will go up or down in value, similar to the Yes or No option non-perpetual contracts have.

A key aspect to perpetual markets is the use of leverage. With leverage, you are able to possess a large position in the market than what you actually purchased. This allows you to potentially gain more in returns, but also opens you up to losing more in losses. We will get more into leverage further down the page.

Kalshi offers perpetual market contracts on limited assets, mostly tied to cryptocurrencies and metals.

How Leverage Impacts Kalshi Perpetual Markets

With leverage, you are able to trade at a larger position than what you actually paid for the contract. By doing this, it gives you stronger position within the market. That means that positive gains will net a larger profit, but also means that losses can have a bigger impact.

Should you suffer losses that approach your initial purchase amount, Kalshi will liquidate your contract states, essentially closing your position in that particular market.

As an example, if you purchase $2,000 toward an asset that allows you to utilize 10x leverage, that gives you a $20,000 position in the market.

So, when a settlement point occurs, 1% gain on your $2,000 contract purchase with 10x leverage would be $200, not $20. That would put your contract value up to $2,200.

The same would apply toward a loss of 1%, your contract value would be deducted by $200, not $20. So, steady gains can have a big positive impact on your contract, but steady losses, can quickly eat up your contract value.

Available Kalshi Perpetual Markets

Kalshi currently offers 24 different perpetual market options at this time. They are broken up into three main categories of Crypto, Metals, and Equity Indices. Here’s a rundown of each market and the max leverage allowed with each.

*Leverage values reflect current API data and may change without notice.

Crypto

Metals

Equity Indices

The funding rate for a particular time period is determined by the interest rate set by Kalshi, and the growth or decline between the contract price and the spot. The wider the gap, the larger the funding rate will be.

Funding is settled three times a day for Crypto markets. They are:

• 12 a.m. ET
• 8 a.m. ET
• 4 p.m. ET

For precious metals, funding is settled just one time a day at 10 a.m. ET.

Crypto markets, as well as gold and silver markets allow for trading 24 hours a day, seven days a week. All other Kalshi perpetual futures markets trade 24 hours a day, five days a week with trading halted on Friday at 5 p.m. ET and resuming on Sunday at 6 p.m. ET.

At those settle points, any gains or losses are then reflected on your margin and impact your contract value.

Margins in Kalshi Perpetual Market Trading

Leverage in Kalshi perpetual markets are tied to margins.

Your initial margin is the amount you actually deposit in order to enter the market, not factoring in the leverage value.

The initial margin is considered collateral toward the credit you receive by using leverage, and is the amount you receive when closing out of your contract. In a real-world comparison, the margin is similar to a security deposit on a rental property.

Your margin requirement will be a fraction of the overall value of the contract after leverage is factored in.

When each of the 8-hour periods concludes on the market, the net gains or net losses impacted during that time will be applied to your margin.

Kalshi will also list a maintenance margin with your contract. This number represents the lowest your account can reach before being required to deposit more funds to the account, or have it closed out by Kalshi. The maintenance margin at Kalshi is typically around 90% of your initial margin.

With Kalshi, your margin account receives 3.25% interest annually for any funds that are in the account.

When Liquidation Occurs to Kalshi Pereptuals

Liquidation is something that will occur when your maintenance margin approaches, or reaches, 0.

Because perpetual markets include using leverage, which are not your actual funds, Kalshi will act when you no longer have collateral to contribute to the contract position.

With leverage impacting your gains and losses at a greater rate, losses can quickly dissolve your margin.

If your leverage is 4x, each loss has greater impact. It would only take 25% decline in your contract’s value to have eaten up your margin and lead to a liquidation.

Stop Loss and Take Profit Orders

One thing that Kalshi users can enforce is a Stop Loss, where you adjust how far your margin can drop before enacting a sale of the contract to avoid further losses or liquidation.

Similarly, users can also set a Take Profit, which enacts a sale when the contract value reaches a certain profit gain that the customer is satisfied with.

These actions are similar to Limit Orders that Kalshi customers user on standard prediction market contracts.

Kalshi Perpetual Futures Funding Rates

In order to keep a balance to the perpetual contract market, recurring payments between traders on each side of the contract occur. This keeps the price of the perpetual contract in line with the spot price of the asset it is tracking.

Because these contracts don’t expire, the funding rates act as closing points. Kalshi has two notable funding rates that they describe as follows:

Positive funding rate: When a contract’s price is above spot. Traders in an up position pay traders in a down position.

Negative funding rate: When a contract’s price is below spot. Traders in a down position pay traders in an up position.

Kalshi Perpetual Futures vs. Kalshi Traditional Futures

Kalshi offers a lot of different contract markets over a wide array of topics, including plenty of “futures” contracts that are decided well past the current time.

However, these standard futures are different than perpetual futures contracts in many ways.

Expiration Date: While traditional futures contracts at Kalshi have an expiration date of a certain date and time, perpetual futures will never expire.

Contract Settlement: Traditional futures will have a settlement at the expiration date of the event, with winning contracts receiving $1 per contract owned. Because perpetual contracts never settle, users can only opt to trade or sell the contract at a point of their choosing. Similarly, losing contracts of traditional futures result in $0 being given to the user, while perpetual contracts will simply be liquidated if the margin funds run out.

Settlement Periods: Perpetual contracts have settlement periods, with Crypto markets settling three times a day. At the end of those periods, the gains or losses are applied to the margin. With traditional futures, no gains or losses are ever applied to the contract until the outcome is decided. While users can always sell their contract prior to the outcome, they will not receive any additional funds until the sale of the contract, or the settlement of the event is reached.

With perpetual contracts, you also don’t have the option of a prediction market combo. With contracts that have expirations, you can stack multiples together like a parlay to increase your profit potential. Because these perpetual futures don’t have an end point, there is no option to stack them together.

Signing up for Kalshi Perpetual Markets

If Kalshi perpetual futures markets sound like something you’d like to try, getting signed up for a new account is easy. Just be located within one of the prediction market legal states. Then, you need to also meet the Kalshi age requirement. You need to be at least 18 years of age to use Kalshi in most legal markets.

• Use our Kalshi links to be taken to the Kalshi app or website.
• You can connect your email, Google account, or Apple ID to quicken the registration process, or you can enter in a username and password to get started. Be sure to use our Kalshi promo code WTOP2000 when signing up to get up to a $2,000 bonus when you make your first $25 in trades.
• Complete the Know Your Customer (KYC) information by providing your legal name, home address, and phone number. These will be automatically filled if you connected one of your other accounts. Kalshi may need you to upload a government-issued photo ID to further confirm your identity.
• Once you’ve signed up for an account, make a first deposit of at least $10 using one of the available Kalshi banking methods. Kalshi accepts many fiat payment accounts, as well as Crypto.
• Visit the Kalshi perpetual markets section, or “Perps” as it is listed, and begin trading on the perpetual futures contracts.

That’s all it takes to get started with Kalshi perpetual futures. Remember that you can use your bonus funds from the Kalshi promo code toward these markets as well.

Tips for Using Kalshi Perpetual Markets

Perpetual Markets on Kalshi create the opportunity to bring in steady profits if you play your cards right, but there is still risk involved due to the leverage factor. It’s important to know the decisions you are making and paying attention to your contract. Here’s some tips if you’re considering getting into Kalshi Perps:

Stay Active: Perpetual futures markets are best for traders who want to stay active and engaged. Each trading cycle provides opportunities for movement and making quick decisions. If you’re looking to purchase a perpetual market contract and let it stay dormant, this might not be for you.

Set Limits: Early in this process, it’s good to take advantage of the Stop Loss and Take Profit limits. Make sure you’re knowing when to cut your losses and when to strike with a profiting contract.

Manage Leverage: Leverage is a great tool that can lead to big profits, but that doesn’t mean you need to max out the leverage option with your perpetual markets, especially early on. Get a feel for how leverage can work for you. As nice as 15x gains sound, the impact of 15x losses is severe as well.

Frequently Asked Questions about Kalshi Perpetual Markets

Here’s some of the more common questions asked about Kalshi perpetual market contracts.

What are Kalshi perpetual markets?

Kalshi perpetual markets are derivative contracts where users are buying and selling a contract attached to an asset that has no end result, unlike most prediction market contracts that are trading over the outcome of an event.

Are Kalshi perpetual markets legal?

Yes, Kalshi is the first prediction market operator in the US to offer perpetual futures contracts through regulation by the Commodities Futures Trading Commission.

What markets are available for Kalshi perpetual futures?

There are two dozen different market options with Kalshi perpetuals right now. Most are with Crypto, but you can also trade on metals and the USA 500.

How does leverage work with Kalshi perpetual markets?

Leverage allows users to trade at a larger position than what they actually paid for their contract. The leverage multiples the value of the position by a factor set by the user. Any gains or losses on the value of the contract is also impacted by the leverage, allowing for greater gains, but opening the door to greater losses.

How do I settle a Kalshi perpetual market contract?

Users can sell their contract at any point to receive profits they have gained, or to cut the losses they have received and don’t want to further diminish. Should a contract take losses that approach the initial purchase, or initial margin, Kalshi will require more funds to be deposited to the contract or face liquidation of the contract.

What are margins in Kalshi perpetual contracts?

There are two margins. The initial margin is the deposit made on the contract without leverage factored in, similar to a security deposit. The maintenance margin is the lowest your account can reach before being required to add more funds or have it closed out by Kalshi. The maintenance margin is usually around 90% of your initial margin.

Can I stack Kalshi perpetual contracts into a combo?

No. Because there is no end point on perpetual markets, you can’t stack multiples together for a combo.

Can I use the Kalshi promo code on perpetual markets?

Yes. Bonus funds received from the Kalshi promo code WTOP2000 can be applied toward perpetual market contracts.