Perpetual vs Dated Futures: What Is the Difference?

Crypto futures include perpetual contracts without an expiration date and dated or quarterly contracts that settle on a specified day. They differ in funding fees, settlement, and price behavior.

The main difference: whether the contract expires

Traditional futures contracts settle on a specified expiration date. Quarterly futures on crypto exchanges follow this model, often expiring on dates such as the last Friday of March, June, September, or December. At expiry, the position settles automatically and the contract ends.

By contrast, a perpetual future, or perpetual swap, has no expiration date. Provided the position is not liquidated, it can be held for days or months. This is why most trading volume concentrates in perpetuals.

Funding fees: the key mechanism in perpetuals

Without expiry, a futures price could remain far away from the spot price indefinitely. Funding fees help prevent this. Longs and shorts exchange payments, commonly every 8 hours. When the futures price is above spot and longs are crowded, longs pay shorts.

How prices converge differently

As a dated future approaches expiry, the difference between its price and spot—the basis—approaches zero. The two coincide at expiry, so some strategies trade the basis itself.

Perpetuals have no expiry, so funding performs that role by continually pulling their price toward spot. Put simply, dated futures converge through time, while perpetuals converge through cost.

Which do beginners use?

Perpetual futures are a straightforward choice for most newcomers because there is no expiry rollover to manage and deeper order books make execution easier. The following points must be learned alongside them.

• Start with low leverage and always check the liquidation price.
• Accumulated funding can erode returns when holding for long periods.
• Set a stop-loss level in advance and follow capital management rules.

Quarterly futures can be useful for taking a longer-term directional position without funding fees or pursuing basis arbitrage. However, managing expiry and lower liquidity requires some experience.

Both products involve leveraged trading and can result in the loss of all principal. Neither guarantees returns. Use only amounts you can afford to risk.