In high-volatility markets, timing, liquidity, and cost management become critical. Quarterly and perpetual futures behave differently under stress—perpetuals adjust quickly due to funding rates, while quarterlies can offer stability without recurring fees. Comparing them helps traders choose the right tool for the market condition—whether to react swiftly or hold a position with less noise and funding cost.
This blog will try to help you understand the differences between the two and which to choose in a volatile market.
Quarterly futures are contracts that expire every three months on a set date. Traders settle them at expiry, with no ongoing funding fees. They’re often used for long-term strategies and reducing cost over time.
Perpetual futures have no expiry and mimic spot prices through funding rate adjustments. They’re ideal for short-term trades, allowing flexibility and continuous exposure. However, traders must manage recurring funding fees and higher volatility.
You can read more about Crypto Perpetual Futures and how to use Mudrex Crypto Futures here.
| Feature | Quarterly Futures | Perpetual Futures |
| Expiry Date | Fixed (e.g., every 3 months) | No expiry |
| Funding Fees | None | Charged periodically to anchor price |
| Price Anchoring | Tends to deviate from spot closer to expiry | Closely tracks spot via funding mechanism |
| Use Case | Strategic long-term positions, calendar spreads | Short-term trading, scalping, and hedging |
| Liquidity | Lower than perpetuals (usually) | High liquidity on most major exchanges |
| Volatility Sensitivity | Less reactive intra-day | Highly responsive to short-term volatility |
A more volatile market means quicker price swings. Perpetual futures are more sensitive to market changes due to their continuous funding rates, which can cause significant cost fluctuations during high volatility.
But quarterly futures usually have fixed expiry dates and so they are less affected by short-term price swings.
Hence Traders must consider whether they want to stay flexible with perpetuals or lock in positions with quarterlies for a more predictable outcome.
Quarterly Futures is Best For
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| Key Question | Quarterly Futures | Perpetual Futures |
| What is my trading timeframe? | Best for long-term exposure. | Ideal for short-term, frequent trades. |
| Am I prepared to manage funding fees? | No periodic funding fees, predictable costs. | Funding fees apply regularly, but offer flexibility. |
| How volatile is the market? | Better for stable or trending markets. | Suited for high volatility, allows quick adjustments. |
| Do I need to adjust positions regularly? | Less flexible, fixed expiry. | Highly flexible, great for active adjustments. |
Read more on how to choose your leverage here
Between crypto quarterly and perpetual futures, it suits your trading style, market view, and risk appetite. In volatile markets, the ability to either stay agile (with perps) or stay cost-efficient and committed (with quarterlies) can make a big difference. Use the decision framework above to align your strategy with your goals. The right choice is the one that helps you stay disciplined, reduce surprises, and manage risk better.
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1. What is my trading timeframe?
If you’re looking for long-term exposure, quarterly futures may be a better fit. For short-term, frequent trades, perpetuals offer more flexibility.
2. Am I prepared to manage funding fees?
If you prefer to avoid periodic funding fees and want a predictable cost structure, quarterly futures are ideal. If you can manage or profit from these fees, perpetuals could be more suited.
3. How volatile is the market?
In high volatility, perpetuals provide quicker adjustments and are more adaptable. For more stable or trending markets, quarterly futures may offer better stability and reduced market noise.
4. Do I need to adjust positions regularly?
If you need flexibility for active trading or quick adjustments, perpetual futures give you more freedom. For less active, strategic positioning, quarterly futures offer a fixed, more predictable approach.
