Perpetual Futures vs. Delivery Futures

    

Before starting futures trading, understanding the differences between contract types can help you choose the one that best suits your needs.

  

   

What Are Perpetual Futures?

    

Perpetual futures are futures contracts with no expiration date, allowing users to hold positions indefinitely.

  

Hotcoin currently supports:

• USDT-Margined Perpetual Futures

• Coin-Margined Perpetual Futures

   

   

What Are Delivery Futures?

   

Delivery futures are futures contracts with a fixed expiration date. Upon expiration, the system automatically settles and closes positions according to the contract terms.

    

Delivery futures commonly include:

• Current-Week Contracts

• Next-Week Contracts

• Current-Quarter Contracts

• Next-Quarter Contracts

   

Hotcoin currently supports:

• USDT-Margined Delivery Futures

• Coin-Margined Delivery Futures

  

   

Key Differences

    

Perpetual futures and delivery futures differ in areas such as expiration mechanisms, funding rates, and trading use cases:

     

  

    

Which Contract Type Is Right for You?

    

For most beginner traders, perpetual futures are generally easier to understand and use because:

• No fixed settlement schedule

• Trading rules are relatively straightforward

• Liquidity is generally higher

   

Delivery futures are generally more suitable for:

• Traders with clear time-based strategies

• Hedging-focused traders

• Those seeking to reduce exposure to funding rates