Perpetual Futures: Kalshi brings "infinite" contracts to the US

Perpetual futures are a type of financial contract that doesn't have an expiration date, unlike traditional futures contracts. They allow traders to bet on an asset's future price for an indefinite period. It's a bit like an endless commitment, but with the option to close your position whenever you want.

Traditionally, futures have a fixed expiration date, forcing you to close or roll over your position. Here, you can keep it open as long as you wish, paying or receiving small periodic adjustments. The CFTC permitted the listing of perpetual futures on US exchanges last month.

Kalshi, known for its "event contracts" (bets on real-world events like weather or elections), was the first company to get the green light from the CFTC for perpetual futures. This allows them to greatly expand their offerings, moving beyond simple event-based wagers.

Robert DeNault, Kalshi's head of enforcement, discussed this growing interest. Kalshi’s contracts were the first perpetual futures approved by the CFTC. This approval means there are now more regulated options for those who want to trade with slightly more... creative financial instruments. A big step forward for the market, or so they claim.