What is the difference between quarterly and perpetual futures? And which should you choose?

Both types of futures allow trading with leverage, but there are important differences.

Quarterly futures:

They have a fixed expiration date (for example, at the end of the quarter).

They do not require a financing rate.

They can be traded above or below the spot price, depending on demand.

Perpetual futures:

They have no expiration date.

There is a financing rate: payments between long and short positions.

They are more flexible and popular among short-term traders.

The choice depends on your strategy: for long-term trading, use quarterly; for short-term speculation, better to use perpetual.