Kalshi now offers perpetual futures on individual stocks. If you already trade perps on Kalshi, stock perps work much the same way, with a few important differences. This article covers how they work and what to know before you trade. New to perps? Start with What are Perpetual Futures?.
What is a single stock perp?
A single stock perpetual futures contract, or stock perp, lets you take a position on the price of an individual company's stock and hold it for as long as you want. There's no expiration date. You decide when to open and close your position.
If you're long and the stock price goes up, you make money. If you're short and the price goes down, you make money. You're trading a contract that tracks the stock's price. You don't own shares of the company.
How big is one contract?
Each stock perp contract represents 0.02 shares of the underlying stock. That means 50 contracts give you the same price exposure as one share.
If a stock trades at $200, one contract is about $4 of exposure.
50 contracts on that stock are about $200 of exposure, the same as owning one share.
This is the size of your exposure, not what you pay to open the position. With leverage, the margin you post can be smaller.
A simple example
Imagine you believe a stock trading at $200 will rise. You open a long position of 50 contracts with $50 of margin at 4x leverage, giving you $200 of exposure.
If the stock rises 10%, your position gains $20, a 40% return on your $50 of margin.
If the stock drops 10%, your position loses $20, 40% of your margin.
While your position is open, you may pay or receive a funding payment once a day depending on market conditions.
Note: Leverage amplifies both gains and losses. In the example above, a 25% drop in the stock's price would wipe out your entire margin. Always trade within your risk tolerance.
How is this different from owning the stock?
No shares. You trade a contract that tracks the stock's price. You don't own the stock, so you don't get voting rights or shareholder materials.
Long or short. You can take a position on the price going down just as easily as up.
Leverage. You can control a larger position with a smaller amount of capital. This amplifies both gains and losses.
Funding payments. Once a day, a small payment flows between long and short holders to keep the contract price anchored to the stock's real-world price.
Dividends are cash adjustments. When a company pays a dividend, long positions receive cash and short positions pay it.
Trading hours. Stock perps follow a trading schedule and close at set times. They are not open 24/7.
Contract specs
Spec | Details |
Underlying | The price of an individual company's stock in USD |
Trading unit | 0.02 shares per contract (50 contracts = 1 share) |
Minimum position | 1 contract (about $4 on a $200 stock) |
Max leverage | Varies by stock, shown on each market page |
Trading hours | Set trading schedule with regular closures (not 24/7) |
Funding | Once a day at 4:00 PM ET |
Expiration | None |
Clearing | Kalshi Klear LLC |
Settlement | 12:00 PM ET and 4:00 PM ET daily |
When can I trade?
Unlike crypto perps, stock perps aren't open around the clock. Each market follows a trading schedule with regular closures, and markets can also close for holidays or pause around a corporate action. The market page shows whether a market is open.
You can't open or close a position while a market is closed. Stock prices can still move during a closure, so your position may reopen at a different price.
How does margin work?
To open a position, you post initial margin, collateral that covers your potential losses. To keep it open, your position needs to stay above the maintenance margin threshold.
As the market moves, your account is updated to reflect gains or losses. If your balance drops below the maintenance margin threshold, your position may be liquidated.
The leverage available depends on the stock and your position size. Check the market page before you trade.
What fees and funding apply?
Trading fees are charged when you open and when you close a position. They're calculated on the full value of your exposure, including leverage.
Maker and taker fees. Orders that fill right away against the order book pay taker fees. Orders that rest on the book and fill later pay maker fees.
Funding is calculated once a day at 4:00 PM ET. If the rate is positive, long holders pay short holders. If it's negative, short holders pay long holders. Funding moves money between traders and is separate from trading fees.
Learn more in Perps fees explained and How funding works.
What happens with dividends, splits, and other company changes?
When a company takes an action that affects its stock, Kalshi adjusts stock perp positions to match. Kalshi publishes a notice for each corporate action with the details.
Cash dividends and special dividends. Cash is added to long positions and deducted from short positions. The notice lists the amount per contract.
Stock splits. Positions are adjusted using the split ratio in the notice.
Cash spin-offs. Handled as a cash adjustment, like a dividend.
Ticker changes. Kalshi publishes a notice when a company changes its ticker symbol.
Mergers, delistings, or bankruptcy. The contract may go to final settlement at the price listed in the notice, which closes open positions.
Note: Trading can pause around a corporate action. Contract details, such as the trading unit, can change after one.
How do I fund my account and withdraw?
Stock perps use your perpetuals account, which is separate from your predictions balance.
Deposit directly to your perpetuals account via ACH, wire, or other supported payment methods.
Transfer funds between your predictions balance and your perpetuals account from the Portfolio tab.
Withdraw from the Portfolio tab: select your perpetuals account and choose Withdraw. You can send funds to your bank or back to your predictions balance.
Only funds not allocated to open positions can be transferred or withdrawn. See Depositing, Transferring & Withdrawing for details.
Does my perps balance earn interest?
Eligible perps balances can earn interest. For current rates, eligibility, and program details, see APY on Kalshi.
Risks to understand before you trade
Stock perps carry real risk. Make sure you understand all of the following before opening a position.
Liquidation risk
If the market moves against your position and your account falls below the maintenance margin threshold, your position may be liquidated. This can happen quickly. In exceptional market conditions, losses can exceed the margin you posted. You can set a stop-loss when placing your order to help manage this.
Market closures and price gaps
Stock prices can jump on earnings, news, or when a market reopens after a closure. You can't trade while a market is closed, so a position can move against you before you're able to act.
Funding costs
Funding payments happen once a day and can add up over time. If you hold a leveraged position for days or weeks, these costs can reduce your profit even if the price moves in your favor.
Corporate actions
Dividends, splits, and other company events change your position or your cash balance. A merger, delisting, or bankruptcy can close your position at the final settlement price.
Important: Perpetual futures involve leverage and carry significant risk of loss. They may not be appropriate for all traders. Never trade more than you can afford to lose. See Risks of Trading Perpetual Futures.
Is this regulated?
Yes. Kalshi is a CFTC-regulated Designated Contract Market (DCM). Stock perps are cleared through Kalshi Klear LLC, Kalshi's CFTC-regulated clearinghouse.
Most retail users trade perps through Kalshi Prime, a registered Futures Commission Merchant (FCM) that manages your margin account and holds your funds in a customer-segregated account, separate from Kalshi's own funds.
How do I get started?
Complete KYC if you haven't already
Apply for perpetuals access and complete the educational tutorial (Applying for Perpetuals Access)
Fund your perpetuals account
Go to a stock perp market page and place your first trade