Binance Perpetual contracts have no expiration date and use funding rates to maintain price anchoring; Quarterly (Delivery) contracts have a fixed expiration date and settle automatically upon expiration. Beginners should use Perpetual contracts — they are simple, intuitive, and have high liquidity. Quarterly contracts are suitable for institutional hedging or a long-term outlook. Register an account from the Binance official site, get the APK via the Binance official App, and find the full-platform process at the Download Center.
Core Differences
| Dimension | Perpetual Contracts | Quarterly Contracts |
|---|---|---|
| Expiration Date | None | Fixed (Quarterly/Monthly) |
| Price Anchoring | Funding Rate (every 8 hours) | Forced Settlement upon Expiration |
| Settlement | Continuous floating | Settled against Index Price at expiration |
| Liquidity | Extremely High | Medium (Quarterly is higher) |
| Best For | Short/mid-term, Copy trading | Hedging, Long-term outlook |
| Complexity | Lower | Higher |
| Price | Close to Spot Price | Premium/Discount to Spot Price |
Perpetual Contracts
The most commonly used futures type:
How It Works
- No expiration date; can be held indefinitely.
- Uses a funding rate mechanism to keep the price close to the spot market.
- Longs and shorts pay the fee to each other.
- Real-time market watching + Real-time PnL.
Funding Rate
Calculated every 8 hours (0:00, 8:00, 16:00 UTC):
- Perpetual Price > Spot Price (More Longs): Longs pay Shorts.
- Perpetual Price < Spot Price (More Shorts): Shorts pay Longs.
Funding Rate Levels:
- Standard: ±0.01-0.05% per 8 hours
- Extreme: ±0.5-1%
Pros
- Simple to operate.
- Can be held indefinitely.
- Best liquidity.
- Suitable for short-term and mid-term trades.
Cons
- Funding rate accumulation can be massive for long-term holding.
- Psychological pressure (24/7 real-time PnL).
Suitable Scenarios
- Short-term trading (entries and exits within hours).
- Mid-term trend following (days).
- Copy trading (following KOLs' moves).
- Tentative orders.
Beginners should use Perpetual contracts.
Quarterly Contracts (Futures)
Contracts with a fixed expiration date:
Types
- Weekly: Settles this Friday.
- Bi-Weekly: Settles next Friday.
- Quarterly: Settles at the end of this quarter (Last Friday of Mar/Jun/Sep/Dec).
- Bi-Quarterly: Settles at the end of next quarter.
How It Works
- Has a fixed expiration time.
- Can be bought or sold before expiration (based on your expectation).
- Automatically settled against the "Index Price" upon expiration.
- Does not require a funding rate.
Price Relationship with Spot
Quarterly contract prices typically have a premium or discount:
- Bull market expectation: Futures Price > Spot Price (Premium / Contango).
- Bear market expectation: Futures Price < Spot Price (Discount / Backwardation).
- Near expiration: Contract price converges to the Spot Price.
Pros
- No funding rates (suitable for long-term holding).
- Fixed expiration date → Forced liquidation → Forced PnL settlement.
- Suitable for hedging.
- Premiums/discounts reflect market sentiment.
Cons
- Slightly worse liquidity than perpetuals (Quarterly is relatively good).
- Higher complexity (requires understanding of contango and backwardation).
- Lower operational flexibility (cannot hold indefinitely).
Suitable Scenarios
- Long-term bullish/bearish views (weeks to 3 months).
- Hedging (holding spot + shorting futures).
- Arbitraging using premiums/discounts.
- Institutional asset allocation.
Fee Comparison: Perpetual vs. Quarterly
Perpetual Contracts
- Trading Fees: Maker 0.02% / Taker 0.05%
- Funding Rate: ±0.01-0.05% per 8 hours
- Cost for holding 1 month (assuming 0.03% / 8h funding rate):
- Funding Rate: 0.03% × 3 × 30 = 2.7%
- Plus Trading Fees: ~3%
Quarterly Contracts
- Trading Fees: Maker 0.02% / Taker 0.05%
- No funding rates
- Holding to expiration: Only trading fees (Open + Close = 0.1% Taker)
Holding Quarterly contracts long-term is cheaper than Perpetuals — it saves on funding rates.
How to Choose
When to Use Perpetuals
- Short-term trading (hours to days).
- When you don't want to calculate funding rates.
- When liquidity is a priority.
- Copy trading.
When to Use Quarterly
- Long-term holding (weeks to months).
- Expecting to save on funding rate costs.
- Hedging.
- Arbitraging based on premiums/discounts.
Practical Examples
Case 1: Short-term BTC Long
You expect BTC to rise 5% in the short term:
- Use Perpetual contracts.
- 5x leverage long.
- Close the position within 1-3 days.
- No need to worry about expiration issues.
Case 2: Long-term Bullish on BTC
You are bullish that BTC will rise 30% over the next 3 months:
- Use Quarterly contracts.
- 3x leverage long.
- Expires in 3 months.
- Automatically settles PnL.
- No funding rate accumulation.
You could also just hold spot (no leverage but much safer).
Case 3: Hedging
You hold 1 BTC in spot, worry about a short-term drop, but don't want to sell:
- Use a Perpetual contract to short 1 BTC.
- 1x leverage.
- Short-term drop → Spot drops + Futures gain → Net value breaks even.
- Short-term rise → Spot rises + Futures lose → Net value breaks even.
- Locks in the current value.
Perpetual Funding Rate Accumulation Example
Assume:
- You go long 10,000 USDT on Perpetual.
- Funding rate is 0.03% / 8 hours.
- Hold position for 30 days.
Funding rate cost:
- Every 8 hours: 10,000 × 0.03% = 3 USDT
- Per day: 3 × 3 = 9 USDT
- 30 days: 9 × 30 = 270 USDT
- Percentage of principal: 2.7%
If the funding rate stays at 0.05% (medium-high):
- 30-day accumulation is 4.5%.
For long-term holding, funding rates can eat into your profits.
Quarterly Contract "Discount Arbitrage"
In a bear market, quarterly contracts might trade at a discount (Futures Price < Spot Price):
- Spot Price: 60000
- Quarterly Contract Price: 59000
- Discount: 1.7%
If you judge that the price won't crash significantly:
- Buy the Quarterly contract (59000).
- Simultaneously short an equivalent amount of spot (e.g., borrow USDT to make a reverse move, simplified scenario).
- At expiration, the contract automatically converges to the spot price → You earn the 1.7% spread.
However, this type of arbitrage is complex and requires specialized knowledge.
Liquidity Comparison
Based on daily trading volume of BTC contracts:
| Contract | Daily Volume (USD) |
|---|---|
| BTCUSDT Perpetual | 20B+ |
| BTCUSDT Weekly | 2B+ |
| BTCUSDT Quarterly | 3B+ |
| BTCUSDT Bi-Quarterly | 0.5B+ |
Perpetuals have the best liquidity. Among delivery contracts, Quarterly contracts have the best liquidity (most traders are concentrated there).
Risk Comparison
Both share common futures risks:
- High leverage = High probability of liquidation.
- Extreme market volatility = Massive short-term losses.
- Frequent trading = Accumulation of high fees.
Differences:
- Perpetuals: Funding rate accumulation during long-term holding.
- Quarterly: Forced settlement upon expiration (cannot be delayed).
Frequently Asked Questions
Q: Can I switch between Perpetual and Quarterly? A: You cannot switch directly. You need to: Close Perpetual → Open Quarterly (or vice versa). You will be charged trading fees twice.
Q: What happens if my Quarterly contract expires and I do nothing? A: It settles automatically at the index price. The PnL is credited to your account.
Q: Can Quarterly contracts be rolled over? A: You can close your position before expiration + open a position in the new contract (next quarter). This equals "rolling over" but requires manual action + paying fees twice.
Q: Is it easier to make money on Perpetuals than Quarterly? A: It depends on the strategy. Perpetuals are great for short-term trades, while Quarterly saves costs on long-term trades. Neither is absolutely superior.
Q: Which is better for institutions? A: Quarterly contracts are better for institutional asset allocation and hedging. Perpetuals are suitable for market makers and high-frequency trading.
Q: Can I use Perpetuals for long-term investments? A: Yes, but it's expensive. Accumulated funding rates could result in 30-100% annualized costs. It is better to use spot or quarterly contracts instead.
Summary
Binance Perpetual contracts have no expiration date, use funding rates to maintain price anchoring, are simple to operate + highly liquid, and are the first choice for beginners. Quarterly contracts have a fixed expiration date (Weekly/Bi-Weekly/Quarterly/Bi-Quarterly), have no funding rates, and are suitable for long-term holding + institutional hedging. Choose Perpetuals for the short term, and Quarterly for the long term. Both carry high risk (high leverage + liquidation); beginners should avoid futures entirely, or practice with the lowest leverage + a very small amount of money.