Quarterly Futures vs. Perpetual Futures

Quarterly futures and perpetual futures are two common types of cryptocurrency derivative contracts, which differ significantly in delivery time, pricing mechanisms, funding fees, and other aspects. The following is a detailed comparison:

I. Basic Definitions

• Quarterly Futures (Seasonal Contracts) Contracts with a fixed delivery date, typically set as a specific date (e.g., the last Friday) in the final month of the season (March, June, September, December). For example, a quarterly contract for June 2025 will be delivered on the last Friday of June.

• Perpetual Futures (Perpetual Swaps) Contracts without a fixed delivery date, theoretically allowing long-term holding. Their prices are closely tied to the spot price of the underlying asset, maintaining price balance with the spot through a "funding fee" mechanism.

II. Core Differences

Comparison Dimension	Quarterly Futures	Perpetual Futures
Delivery Time	Fixed delivery date; contracts are compulsorily settled upon maturity, and positions are closed at the delivery price.	No fixed delivery date; positions can be held indefinitely without worrying about maturity closure.
Pricing Mechanism	Prices reference the market price of the underlying asset, but settlement uses the delivery price (usually the average spot price on the delivery date), which may deviate from the real-time price.	Prices are pegged to the spot index price of the underlying asset. The funding fee mechanism eliminates long-term premium/discount between the contract and spot, keeping prices closer to the spot.
Funding Fees	No funding fees; holding costs mainly come from trading fees and margin interest (if any).	Funding fees exist. Long and short positions periodically (e.g., every 8 hours) pay or receive fees based on market conditions to maintain price balance with the spot. Example: When the contract price is higher than the spot, longs pay funding fees to shorts; the opposite applies when the contract price is lower.
Holding Purpose	Suitable for users with clear short-term market predictions or for hedging spot risks over a specific period, requiring repositioning after maturity.	Suitable for long-term holding, arbitrage, or hedging, offering continuous trading without frequent contract rollovers.
Premium Situation	May experience "futures premium" (contract price higher than spot) or "futures discount" (contract price lower than spot) before maturity, with potentially greater price volatility near delivery.	Premium/discount is continuously adjusted by funding fees, maintaining a low level for long-term price stability.
Liquidation Logic	The liquidation mechanism is similar to perpetual futures, but exchanges may adjust margin rates near delivery to reduce settlement risks.	Profits and losses are calculated in real-time based on the mark price (spot index price), triggering liquidation when margin is insufficient. Liquidation risks are higher during large price swings.

III. Example: Trading BTC Contracts

Quarterly Futures (Delivery Date: June 28)

• If you go long 100 contracts at 30,000 USDT in May and hold until June 28, when the average BTC spot price is 35,000 USDT, settlement occurs at 35,000 USDT, yielding a profit of 5,000 USDT. If closed before delivery, settlement uses the real-time market price.

• Risk: If BTC crashes near delivery, the contract may be liquidated due to insufficient margin, or the delivery price may deviate from expectations.

Perpetual Futures

• Going long 100 contracts at 30,000 USDT, checking the funding rate every 8 hours:

  • If the funding rate is +0.01%, longs pay (30,000 USDT × 100 contracts × 0.01%) = 30 USDT to shorts every 8 hours.

  • If BTC rises to 35,000 USDT, the profit is 5,000 USDT, but cumulative funding fees during holding (e.g., 10 days: 30 USDT × 3 times/day × 10 days = 900 USDT) are deducted, resulting in a net profit of ~4,100 USDT.

IV. How to Choose?

• Opt for Quarterly Futures When:

  • Engaging in short-term speculation to profit from market volatility around fixed delivery dates.

  • Hedging spot risks over a specific period (e.g., expecting heightened market volatility at quarter-end).

  • Avoiding funding fees of perpetual futures, especially for long-term holdings.

• Opt for Perpetual Futures When:

  • Holding positions or arbitraging long-term, prioritizing continuous trading without delivery concerns.

  • Aiming to profit from the funding fee mechanism (e.g., shorting when expecting sustained contract premium to earn funding fees).

  • Having a clear long-term trend prediction for the underlying asset and unwilling to roll over contracts frequently due to delivery dates.

Summary

Quarterly futures suit short-term trading or periodic hedging, requiring attention to delivery risks. Perpetual futures are ideal for long-term strategies or arbitrage, entailing funding fees but offering higher flexibility. The choice should align with trading cycles, risk preferences, and market judgments, while noting that contract rules (e.g., delivery times, funding fee calculations) may vary across exchanges.