This article will systematically explain the differences between perpetual futures and delivery futures from the aspects of definition, core differences, application scenarios, and risk management, and combined with the characteristics of the Gate platform, provide you with selection suggestions and operational guidelines for futures trading.
1. Definition: What is Perptual Futures?
Perptual Futures is a type of
No Expiry Users can trade derivatives contracts on
Perptual Futures There is no need to worry about being liquidated or delivered after the contract expires. Perpetual futures through
funding rate mechanism To maintain the anchoring of the contract price with the underlying spot price, both long and short sides will pay each other funding when the price deviates from the spot.
2. Definition: What is a delivery contract?
Delivery contract (traditional futures contract) is in
Delivery Date With
agreed price Buy and sell underlying asset contracts, which are automatically settled or physically/cash delivered upon contract expiration. Different from perpetual futures, delivery contracts
No regular funding rate involved However, attention should be paid to the expiration date of the contract and the potential risk of significant price fluctuations at that time.
3. The core difference between Perpetual Futures and Delivery Futures
Delivery and Settlement
- Perptual Futures Perptual Futures: No expiration date, can be held long-term, settlement relies on funding rate mechanism;
- Delivery Futures Futures trading: Contracts with fixed expiration dates require delivery at market price or predetermined price upon expiration;
funding rate
- Perptual Futures Settlement of funding rates occurs every 8 hours to balance long and short positions.
- Delivery Futures No funding rate, but need to bear the risk of price fluctuations before expiration;
Pricing Mechanism
- Perptual Futures The price is anchored to the spot market, and the funding rate mechanism is used to encourage the contract price to stay close to the spot price.
- Delivery Futures The price is matched by the exchange and the position profit and loss is maintained through daily Mark-to-Market settlement without debt;
Scenario Comparison
| Scenario | Perptual Futures | Delivery Futures |
|---|---|---|
| short-term/high-frequency trading | Flexible holdings, no expiration, suitable for quick entry and exit | Due to the expiration date limit, it is not conducive to frequent switching |
| Medium to Long-term Investment | The holding cost is affected by the funding rate and is suitable for confident trend judgments. | Locking in costs when the contract expires is more suitable for medium to long-term trend trading |
| trap/hedge | Hedging seamlessly with Spot, but pay attention to funding rate | Design precise hedging strategies according to the expiration date |
Risk Management and Selection Advice
- Leverage Risk High leverage can amplify profits and also accelerate liquidation; it is recommended for beginners to start with low leverage.
- funding rate cost The longer the holding time of perpetual futures, the greater the impact of the funding rate on costs; short-term traders or hedgers are more suitable for perpetual futures.
- Expiration risk Delivery contracts require attention to the contract expiration date and the delivery risk at that time. It is recommended that investors with more solid trend judgments choose delivery contracts.
4. How to Trade on Gate
Gate provides
Perpetual Futures and
Two types of delivery contracts Trading mode, you can freely switch in ‘Futures Trading’ -> ‘Contract Type’ and view
Real-time funding rate、
Countdown to expiration date Wait for key information.
- Perpetual Futures Trading Supports various order types such as market order, limit order, take profit, stop loss, etc., and allows direct viewing of funding rate history;
- Delivery Contract Operation Gate: Provide delivery date reminders and position rollover functionality for convenient cross-period management of holdings.
5, Conclusion
Perpetual futures and delivery futures each have their own advantages, and users should choose reasonably based on their own trading strategies, holding periods, and risk preferences.
