When trading Bitcoin futures, investors often face a choice between delivery contracts and perpetual contracts. Each has distinct features catering to different trading strategies. Below, we break down their differences, advantages, and ideal use cases.
Key Differences
1. Delivery Contracts
- Fixed Expiry Date: Settled (e.g., weekly, quarterly) at predetermined times.
- Mandatory Settlement: Positions are closed automatically upon expiry.
- Example: A "weekly contract" expires every Friday at 16:00 UTC.
2. Perpetual Contracts
- No Expiry: Positions can remain open indefinitely (barring liquidation).
- Funding Rate Mechanism: Periodic fees balance long/short demand to peg the contract price to the spot market.
- Flexibility: Preferred for long-term hedging or speculation.
Pros and Cons
| Feature | Delivery Contracts | Perpetual Contracts |
|------------------|-----------------------------|------------------------------|
| Expiry | Mandatory | None |
| Cost | No funding fees | Funding rate applies |
| Liquidity | High near expiry | Consistently high |
| Use Case | Short-term trading | Long-term strategies |
FAQs
Q1: Can I hold a delivery contract past its expiry?
A: No. All positions are强制平仓 (force-closed) at settlement.
Q2: How does the funding rate work in perpetual contracts?
A: Traders pay/receive fees every 8 hours based on market demand to maintain price alignment with spot Bitcoin.
Q3: Which contract type has lower fees?
A: Delivery contracts avoid funding fees but may incur higher trading spreads near expiry.
👉 Learn advanced Bitcoin trading strategies
Trading Tips
- Scalpers: Prefer perpetual contracts for uninterrupted positions.
- Arbitrageurs: Use delivery contracts to exploit expiry-price mismatches.
- Risk Management: Perpetual contracts require monitoring funding rates to avoid unexpected costs.
For institutional hedging, delivery contracts’ fixed timelines may align better with treasury planning, while perpetual contracts suit algorithmic traders.
👉 Explore Bitcoin futures with OKX’s low-fee platform
Keywords: Bitcoin futures, delivery contracts, perpetual contracts, funding rate, crypto trading, hedging, expiry settlement
### SEO Notes:
- **Title**: Targets search intent by comparing contract types directly.
- **Structure**: Headings (`##`, `###`) enhance readability and keyword integration.