How do Binance futures quarterly contracts compare to perpetual contracts?
Prasanna BMar 21, 2024 · a year ago3 answers
Can you explain the differences between Binance futures quarterly contracts and perpetual contracts? What are the advantages and disadvantages of each?
3 answers
- Tyrone HarperMar 24, 2022 · 3 years agoBinance futures quarterly contracts and perpetual contracts are two popular trading options on the Binance platform. While both offer opportunities for traders to profit from the price movements of various cryptocurrencies, there are some key differences between the two. Binance futures quarterly contracts have a fixed expiration date, typically three months after the contract is opened. This means that traders need to close their positions before the expiration date. On the other hand, perpetual contracts do not have an expiration date and can be held indefinitely. One advantage of Binance futures quarterly contracts is that they provide traders with a clear timeframe for their trades. This can be beneficial for those who prefer to have a defined trading period. Additionally, quarterly contracts often have lower funding rates compared to perpetual contracts, which can result in lower trading costs. Perpetual contracts, on the other hand, offer more flexibility as they do not have an expiration date. Traders can hold their positions for as long as they want, allowing them to take advantage of longer-term price movements. Perpetual contracts also typically have higher liquidity compared to quarterly contracts, which can make it easier to enter and exit positions. In summary, Binance futures quarterly contracts are suitable for traders who prefer a defined trading period and potentially lower trading costs. Perpetual contracts, on the other hand, offer more flexibility and higher liquidity. The choice between the two ultimately depends on the trading strategy and preferences of the individual trader.
- Khan IqraApr 15, 2025 · 3 months agoBinance futures quarterly contracts and perpetual contracts are like apples and oranges. They serve different purposes and cater to different trading styles. Quarterly contracts have a fixed expiration date, while perpetual contracts do not. This means that quarterly contracts are better suited for short-term trading, while perpetual contracts are more suitable for long-term positions. Additionally, quarterly contracts often have lower funding rates, which can be advantageous for traders looking to minimize costs. On the other hand, perpetual contracts offer more flexibility and allow traders to hold positions indefinitely. They also tend to have higher liquidity, making it easier to enter and exit positions. Ultimately, the choice between the two depends on the trader's time horizon, risk tolerance, and trading strategy.
- Eric CarrollMar 10, 2025 · 4 months agoWhen it comes to Binance futures contracts, there are two main types: quarterly contracts and perpetual contracts. Quarterly contracts have a fixed expiration date, typically three months after the contract is opened. On the other hand, perpetual contracts do not have an expiration date and can be held indefinitely. The main advantage of quarterly contracts is that they provide traders with a clear timeframe for their trades. This can be useful for those who prefer short-term trading. Perpetual contracts, on the other hand, offer more flexibility as they do not have an expiration date. Traders can hold their positions for as long as they want, allowing them to take advantage of longer-term price movements. Both types of contracts have their own advantages and disadvantages, so it's important for traders to carefully consider their trading strategy and goals before choosing which type of contract to trade.
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