Crypto futures trading software typically supports several types of contracts. The most common are:
Perpetual futures, which have no expiry date and use funding rates to keep prices aligned.
Standard futures, which settle on a specific date.
Quarterly or seasonal contracts, which expire at set intervals, like every three months.
Some platforms may also offer options or synthetic contracts linked to specific indices or asset baskets. Offering this variety is an important part of crypto future trading software development, allowing traders to choose contracts that fit their strategy.
Most crypto futures trading platforms offer a few core types of futures contracts, each designed for different trading styles and risk levels. Here’s a clear breakdown for anyone new or comparing options:
1. Perpetual Futures Contracts
These are the most popular in crypto trading. Perpetual futures don’t have an expiry date, which means traders can hold positions as long as they maintain margin. Prices are kept close to the spot market using a funding rate mechanism. These contracts are favored by short-term traders and scalpers because of their flexibility and high liquidity.
2. Delivery (Fixed-Expiry) Futures
These contracts come with a set expiration date (weekly, monthly, or quarterly). At expiry, positions are settled automatically. Delivery futures are often used by more experienced traders or institutions for hedging and longer-term strategies since they don’t rely on funding fees like perpetuals do.
3. USDT-Margined Futures
In this type, profits, losses, and margin are all settled in stablecoins like USDT or USDC. They’re beginner-friendly because they’re easier to calculate and manage, especially during volatile markets.
4. Coin-Margined Futures
These contracts are margined and settled in the underlying cryptocurrency (like BTC or ETH). They’re typically used by traders who already hold the asset and want to hedge or increase exposure without converting to stablecoins.
5. Leveraged Futures
Most platforms allow leverage (sometimes up to 100x or more). While leverage increases potential profits, it also dramatically raises liquidation risk, so risk management is critical.
Overall, the right contract depends on your trading goals, experience level, and risk tolerance. Many traders use futures alongside other strategies, such as investing in early-stage projects through a crypto presale website, to balance high-risk trading with long-term opportunities.