Synthetic equity exposure
A stock perp follows the price of one company, while an index perp follows a basket or index calculation. Neither gives voting rights, dividends, or ownership of the underlying shares.
The protocol must define how its reference price behaves before, during, and after the primary equity session.
Single stocks versus indices
Single stocks carry company-specific earnings, management, regulatory, takeover, and corporate-action risk. An index spreads exposure across constituents but introduces index methodology and concentration effects.
Leverage limits may differ because an individual share can gap much more sharply than a diversified index.
Dividends and corporate actions
Share prices mechanically adjust around cash dividends, splits, mergers, and other events. A derivative venue needs published adjustment rules so neither side receives an unintended windfall.
Do not assume every protocol handles these events in the same way.
When the underlying market is closed
Some venues pause execution. Others continue with wider spreads or alternative pricing. Either design can expose the trader to gaps and limited exit liquidity.
Check market status before using a tight stop or high leverage around earnings, holidays, and overnight sessions.
The index is calculated, not directly held
The Nasdaq-100 is a rules-based index of large non-financial companies listed on Nasdaq. Its value reflects an index methodology, constituent weights, corporate actions, and rebalancing. A perpetual referencing that index is another layer: it provides synthetic exposure but no voting rights, dividends, or claim on the component shares.1
Cash-session opens, closes, earnings, and index changes can concentrate risk even when a related futures reference trades extended hours. Check the provider’s actual session policy because orders may queue, be rejected, or face different leverage limits outside the main market.23