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What is the difference between quarterly and open-ended futures? And which one to choose?
Both types of futures allow you to trade with leverage, but there are important differences.
Quarterly futures:
Have a fixed expiration date (e.g., end of the quarter).
Do not require a funding rate.
Can be traded above or below the spot - depending on demand.
Perpetual futures:
No expiration date.
There is a funding rate - payment between longs and shorts.
More flexible and popular with short-term traders.
The choice depends on the strategy: for long-term trading - quarterly, for speculation - perpetual.
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