What are the advantages and disadvantages of Binance futures quarterly vs perpetual contracts?

3 answers

• Dec 17, 2021 · 3 years ago
  Binance futures quarterly contracts offer traders the advantage of fixed expiration dates, allowing them to plan their trading strategies more effectively. However, these contracts also come with the risk of losing the entire investment if the market moves against the trader before the expiration date. On the other hand, Binance perpetual contracts have no expiration date, providing traders with the flexibility to hold positions for as long as they want. This can be advantageous in a volatile market, but it also exposes traders to the risk of funding fees and potential liquidation if their positions are not managed properly.
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• Dec 17, 2021 · 3 years ago
  When it comes to Binance futures contracts, the quarterly contracts have a specific expiration date, usually at the end of each quarter. This can be beneficial for traders who prefer a more structured approach to trading and want to align their positions with specific market events or news. However, it's important to note that the fixed expiration date also means that traders have less flexibility in managing their positions compared to perpetual contracts. Perpetual contracts, on the other hand, do not have an expiration date, allowing traders to hold their positions for as long as they want. This can be advantageous in a trending market, but it also means that traders need to actively manage their positions to avoid potential liquidation or funding fees.
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• Dec 17, 2021 · 3 years ago
  As a third-party observer, it's important to consider the advantages and disadvantages of Binance futures quarterly contracts compared to perpetual contracts. Quarterly contracts provide traders with the opportunity to align their positions with specific market events and news, which can be advantageous for those who prefer a more structured approach to trading. However, the fixed expiration date also means that traders have less flexibility in managing their positions. On the other hand, perpetual contracts offer traders the flexibility to hold positions for as long as they want, which can be beneficial in a trending market. However, traders need to be aware of the potential risks associated with funding fees and liquidation if their positions are not properly managed. Ultimately, the choice between quarterly and perpetual contracts depends on the individual trader's trading style and risk tolerance.
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