Which is better for trading, Binance futures quarterly or perpetual contracts?

7 answers

• Dec 17, 2021 · 3 years ago
  Both Binance futures quarterly and perpetual contracts have their own unique advantages. Quarterly contracts are designed for longer-term trading strategies, as they have fixed settlement dates and are settled in a similar way to traditional futures contracts. On the other hand, perpetual contracts do not have an expiration date, allowing traders to hold positions indefinitely. This flexibility can be useful for short-term trading or hedging strategies. Ultimately, the choice between the two depends on your trading style, risk tolerance, and investment goals.
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• Dec 17, 2021 · 3 years ago
  If you prefer a more traditional approach to trading and are comfortable with fixed settlement dates, Binance futures quarterly contracts may be a better fit for you. These contracts offer a clear timeline for settlement and can be useful for traders who want to plan their positions ahead of time. However, it's important to note that quarterly contracts may be subject to price fluctuations as the settlement date approaches.
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• Dec 17, 2021 · 3 years ago
  From my experience at BYDFi, I've found that many traders prefer Binance perpetual contracts due to their flexibility and lack of expiration dates. Perpetual contracts allow traders to hold positions for as long as they want, which can be advantageous in volatile markets. Additionally, perpetual contracts often have higher liquidity compared to quarterly contracts, which can result in tighter spreads and better execution for traders.
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• Dec 17, 2021 · 3 years ago
  When deciding between Binance futures quarterly and perpetual contracts, it's important to consider the funding rate. Perpetual contracts have a funding mechanism that ensures the contract price closely tracks the underlying asset price. This funding rate is exchanged between long and short positions and can have an impact on the overall profitability of the trade. Traders should carefully monitor the funding rate and its potential impact on their positions.
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• Dec 17, 2021 · 3 years ago
  In terms of trading strategies, quarterly contracts may be more suitable for longer-term positions or hedging strategies, while perpetual contracts can be beneficial for short-term trading or taking advantage of market volatility. It's also worth noting that Binance offers a wide range of trading pairs and leverage options for both types of contracts, allowing traders to customize their strategies based on their preferences and risk appetite.
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• Dec 17, 2021 · 3 years ago
  When comparing Binance futures quarterly and perpetual contracts, it's important to consider your own trading goals and risk tolerance. Both types of contracts have their own advantages and disadvantages, and what works for one trader may not work for another. It's recommended to thoroughly research and understand the features of each contract type before making a decision.
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• Dec 17, 2021 · 3 years ago
  While Binance is a popular and reputable exchange, it's worth exploring other exchanges as well. Different exchanges may offer different contract types, trading pairs, and features that could better suit your trading needs. It's always a good idea to diversify your trading activities and explore different platforms to find the best fit for your trading strategies.
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