Equity Perpetual Futures Simulator
Following filings by Kalshi and Coinbase for US stock-linked perpetual futures, this workbench models 8-hour funding rates, leverage liquidation envelopes, dividend cash drag, and basis carry arbitrage across single-stock equity perps.
| Execution Instrument | Required Collateral | Leverage Cap | Financing / Carry Mechanism | Holding Cost (14d) | Ex-Dividend Impact |
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1. The 8-Hour Funding Rate Anchor
Unlike CME index futures which expire quarterly, perpetuals never expire. To prevent the contract price ($P_{perp}$) from decoupling from the underlying cash stock ($P_{spot}$), traders make periodic funding payments (usually every 8 hours). When perps trade at a premium, longs pay shorts; at a discount, shorts pay longs.
2. Equity Peculiarities: Dividends & Corporate Actions
Unlike crypto assets, equities issue regular quarterly dividends that cause overnight spot price drops on ex-dates. Perpetual contracts must either execute synthetic balance adjustments or let the funding rate naturally shift deeply negative ahead of ex-dividend dates to prevent arbitrage exploitation.
3. Cash & Carry Basis Arbitrage
If an equity perpetual carries a persistent positive funding rate, market makers can buy spot shares (hedged delta-neutral) and short the perpetual contract. They earn the 8-hour funding cash stream minus prime broker borrow rates, minting risk-free synthetic yield.