Crypto Perpetual Futures Trading FAQs

With the launch of Perpetual Futures trading on Giottus, many users are exploring this powerful new way to trade crypto. To help you get started and trade with confidence, we’ve compiled answers to the most commonly asked questions. This FAQ covers everything from basic concepts like how perpetual contracts work to platform-specific features such as margin requirements, supported pairs, and position management.

If you’re new to futures or simply looking for clarity before placing your first trade, this guide is a good place to begin.

Also read: Giottus Launches Perpetual Futures Trading with Zero Fee Offer

1. What are perpetual futures contracts in crypto trading?

Perpetual futures, often called "perps," are derivative contracts that allow traders to speculate on the price of crypto assets like Bitcoin or Ethereum without owning the actual asset. Unlike traditional futures contracts, perps have no expiration date, meaning you can hold a position as long as your account meets margin requirements.

2. How do perpetual futures differ from traditional futures?

Traditional futures have a fixed maturity date, requiring traders to settle or roll over their positions. Perpetual futures, however, can be held indefinitely, making them ideal for long-term strategies or short-term price speculation. The funding rate, a periodic fee exchanged between long and short position holders, ensures the contract price stays close to the underlying asset's spot price.

3. What is the funding rate, and how does it work?

The funding rate is a small fee paid between traders holding long (buy) or short (sell) positions to balance market dynamics. If the market sentiment is heavily weighted toward long positions, the funding rate may be positive, meaning long traders pay short traders, and vice versa. Typically adjusted every eight hours, this mechanism prevents the contract price from drifting too far from the spot price. For example, a Rs. 10,000 long position with a 0.01% funding rate would cost Re.1 every eight hours.

4. What is leverage, and how is it used in perpetual futures?

Leverage allows traders to control a larger position with less capital. For instance, with 5x leverage, $1,000 can control a $5,000 position. While leverage can amplify profits, it also increases the risk of significant losses or liquidation if the market moves against your position.

5. Is there a fee while trading futures in Giottus?

There is no fee for trading perpetual futures on Giottus till September 30, 2025.

6. Which coin pairs do we offer?

For now, Giottus will be offering BTC, TRX, and DOGS in USDT pairs. However, more pairs will be added soon.

7. What are the risks of trading perpetual futures?

Perpetual futures trading carries high risks due to leverage and market volatility. You could lose your entire margin if the market moves unfavorably, leading to liquidation. Funding rates can also add costs over time, especially in unbalanced markets.

8. What are USDT-margined contracts?

USDT-margined contracts are settled in stablecoins, providing stability in value. These cash-settled contracts are often preferred for their predictability in cryptocurrency options trading.

9. Can I trade perpetual futures in India?

Yes. Giottus, registered with the Financial Intelligence Unit (FIU), offers Futures trading in India.

10. How can I manage risk when trading perpetual futures?

Effective risk management includes:

1. Using appropriate leverage to avoid overexposure
2. Monitoring funding rates to anticipate costs
3. Diversifying positions to spread risk across assets
4. Keeping a sufficient margin to avoid liquidation during volatile market swings

11. How do I start trading perpetual futures?

1. Create an account on Giottus, a leading crypto trading platform
2. Complete required KYC (Know Your Customer) verification
3. Deposit funds (crypto or fiat)
4. Learn the platform's interface and tools, such as charting or order types
5. Start with small positions and low leverage to practice risk management
6. Use educational resources provided by exchanges, like tutorials or demo accounts, to build confidence

12. Why are perpetual futures popular in crypto trading?

Perpetual futures are popular because they offer:

1. No expiration: Flexibility to hold positions without rolling over contracts
2. Leverage: Ability to amplify returns with less capital
3. Long and short opportunities: Profit potential in both rising and falling markets
4. Liquidity: High trading volumes ensure smooth execution
5. Hedging: A way to protect spot market holdings against price drops

13. What is liquidation, and how can I avoid it?

Liquidation occurs when your account's margin falls below the maintenance margin due to adverse price movements, forcing the exchange to close your position. To avoid liquidation:

1. Use lower leverage to reduce risk
2. Maintain a buffer in your margin account
3. Monitor market conditions and adjust positions as needed

14. How do funding rates affect my trading strategy?

Funding rates can impact profitability, especially for long-term positions. If you hold a long position in a bullish market, a positive funding rate means you'll pay periodic fees, reducing profits. Conversely, short positions may earn funding in such conditions. Check funding rates before entering trades and factor them into your strategy, especially for extended holds.

15. How are profits from crypto futures trading taxed in India?

Profits from crypto futures trading in India are generally classified as non-speculative business income. These gains are added to your “Profits & Gains of Business or Profession” total income and taxed according to your applicable income tax slab rate. It's important to maintain detailed records of all transactions for accurate reporting.

16. Is the 30% tax on crypto applicable to futures trading?

The 30% tax rate under Section 115BBH of the Income Tax Act primarily applies to income from the transfer of virtual digital assets (VDAs). However, the gains or losses from crypto futures trading will be added to your “Profit & Gains of Business or Profession” and taxed according to your applicable income tax slab rate. However, it's advisable to consult a tax professional to determine the appropriate tax treatment for your crypto futures trading.

17. Does the 1% TDS apply to crypto futures trades?

No, the 1% Tax Deducted at Source (TDS) under Section 194S is not applicable to crypto futures. This TDS is levied on the transfer of VDAs, which do not include derivative instruments like futures contracts. Therefore, when trading crypto futures on Giottus, you are not subject to the 1% TDS.

18. Can I offset losses from crypto futures trading against other income?

Non-speculative losses can be set off against any other business income except salary income in the same year. So they can be set off against bank interest income, rental income, and capital gains, but only in the same year.

You carry forward non-speculative losses to the next 8 years; however, do remember that carried forward non-speculative losses can be set off only against any business income made in that period.

Losses from crypto futures trading, classified as speculative business losses, can only be offset against speculative business income. These losses cannot be set off against income from other sources, such as salary or non-speculative business income. Unadjusted losses can be carried forward for up to four assessment years, provided the tax return is filed within the due date.

19. Is there any fee if a user moves USDT from Spot to Futures and vice versa?

On Giottus, there is no fee to move USDT from Spot account to Futures or vice versa.