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What risks come with trading perpetual futures?

Perpetual futures are typically traded with margin (i.e., borrowed money), allowing traders to control a position worth several times the capital they put up. That leverage magnifies both gains and losses. If losses push the account below required maintenance margin, the trader may face a margin call or, depending on the exchange, automatic liquidation of the position. Recurring funding payments can also add substantially to the cost of holding a leveraged position over time.