What are ETF perpetuals?
Traditional ETFs provide diversified exposure to an index or sector and trade during market hours, settling in fiat currency. ETF perpetual contracts reference the same underlying products but operate differently in key ways.
ETF perpetuals have no expiration date, allowing positions to be held indefinitely as long as margin requirements are met. They are margined and settled in USDT rather than fiat, eliminating currency conversion and the need for a separate brokerage account. Crucially, they trade continuously rather than during exchange hours only.
This means positions can be opened, adjusted, or closed at any time, including outside traditional market hours when roughly two-thirds of the week passes with markets closed. However, perpetual contracts are derivatives rather than ownership of the underlying fund. They carry funding payments, margin requirements, and liquidation risk that spot ETF holdings do not.
Available contracts
Zoomex's ETF perpetual lineup includes several categories of exposure:
- Broad market index: SPYUSDT tracks the SPDR S&P 500 ETF Trust for US large-cap exposure, while QQQUSDT tracks the Invesco QQQ Trust with heavier technology weighting.
- Small-cap exposure: IWMUSDT tracks the iShares Russell 2000 ETF for US small-cap equities.
- Sector-specific: XLFUSDT tracks the Financial Select Sector SPDR Fund, and XLKUSDT tracks the Technology Select Sector SPDR Fund.
- Leveraged: TQQQUSDT references ProShares UltraPro QQQ, a 3x leveraged product tracking the Nasdaq 100, representing the highest-risk instrument in the group.
How they work on the platform
ETF perpetuals operate on the same infrastructure as Zoomex's crypto perpetuals, using a unified interface and account system. Users search for ticker symbols in the TradFi category and open positions using the same process as any crypto pair.
Contracts are USDT-margined and support both cross and isolated margin modes. Contract specifications including leverage caps, tick size, funding rate schedule, and margin requirements are published and visible before positions are opened.
Positions can be opened long or short. Funding is exchanged at fixed intervals following the same mechanics as crypto perpetuals. Pricing outside traditional exchange hours reflects the market's ongoing assessment rather than a quoted exchange price, an important consideration for positions held across weekends.
Risk considerations
ETF perpetuals carry risks common to leveraged derivatives. Positions can be liquidated if margin requirements are not met, and losses can exceed initial expectations during rapid market movements. Funding payments accumulate over time and affect the cost of holding a position.
Leveraged ETF products warrant additional consideration. A 3x leveraged ETF is designed to deliver three times the daily return of its index, not three times the return over longer periods. Over multi-day holding periods, compounding can cause realized returns to diverge meaningfully from three times the index's movement, particularly in volatile or range-bound conditions.
Contract parameters, funding schedules, and liquidation mechanics are published for every contract in the TradFi Zone and should be reviewed before opening a position. Position sizing should be treated as a function of account balance rather than available leverage.
