Quarterly vs Perpetual Futures: When to Use Each in a Volatile Market

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.

Quick Primer: Quarterly vs Perpetual Futures

Quarterly Futures

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

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.

Difference between Quarterly and Perpetual Futures

Volatility and Crypto Futures Trading: Why should you compare Quarterly Futures with Perpetual Futures

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. 

When to Use Quarterly Futures

Quarterly Futures is Best For

• long-term positions, 
• Traders looking to avoid the periodic funding fees associated with perpetual contracts.
• Suitable for those seeking stability without worrying about daily or weekly funding costs.
  

Market Scenarios where Quarterlies Outperform Crypto Perps

Stable or Trending Markets

• In steady, directional markets, quarterly futures allow traders to capture long-term gains without the noise of daily price fluctuations.
• Perpetual futures may not be as effective in such scenarios because they are more sensitive to short-term volatility.

When Position Adjustments Are Not Necessary

• If the trader doesn’t need to react to every price swing, quarterly futures provide the advantage of a fixed expiry, allowing for easier long-term planning.
• Perpetuals require more attention due to funding fees and constant adjustments, which might not suit traders seeking simplicity in stable conditions.

ALSO READ: How to Hedge Your Crypto Portfolio

Market Scenarios where Crypto Perps Outperform Quarterly Futures

Highly Volatile Markets

• Perpetual futures shine in volatile markets, as they allow traders to quickly respond to price swings and capture short-term opportunities.
  
• Quarterly futures, with their fixed expiry, may not react as swiftly to sudden market changes, potentially missing profitable trades.
  

Frequent Trade Adjustments

• Traders who prefer to actively adjust positions based on real-time market movements benefit from the flexibility of perpetuals.
  
• Quarterly futures may restrict this flexibility due to their fixed expiry dates and less frequent price adjustments.

Short-Term Strategies and Scalping

• In fast-moving markets, perpetual futures allow traders to take advantage of rapid price fluctuations with no expiry date to worry about.

Short Term Crypto Trading Strategies

• Quarterly futures can be less useful for short-term strategies, as the fixed nature of their expiry may limit quick adjustments and exit points.

Read More about Scalp Trading Here

Rule-of-Thumb Guide

• Long-term positioning or low-maintenance trades → Quarterly Futures
• Short-term trades, active adjustments, or high-volatility environments → Perpetual Futures

Read more on how to choose your leverage here

Conclusion

Between crypto quarterly and perpetual futures, 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.

Put your crypto strategies to action. Trade crypto futures on Mudrex—India’s most intuitive crypto futures platform with powerful features, and seamless execution. 

And if you want to stay sharp in volatile markets, join our Telegram community for real-time insights, trading tips, and smart strategies from fellow traders.

FAQs

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.