Perpetual vs. Expiry Futures: Funding, Settlement and Rollover

Perpetual futures generally have no scheduled expiry, while dated futures end on a specified date under their contract rules. Perpetuals commonly use funding to help keep their price near a reference market. Dated futures use an expiry and settlement process. Both can create leveraged exposure and liquidation risk.

Read the actual contract specification

Check the underlying reference, quote and settlement currencies, contract multiplier, margin method and trading hours. Product names alone do not establish equivalent exposure. This comparison does not claim that OrangeX.com offers every type of dated futures described here.

A cash-settled contract ends through a specified cash calculation. A physically delivered contract follows delivery obligations. The word futures does not mean every buyer automatically receives withdrawable crypto.

Compare the cost structures

Perpetual funding can be paid or received, and its rate and direction can change. Fees, spreads and slippage also affect the result. A funding receipt does not guarantee an overall profit.

Dated futures can trade above or below the reference spot price before expiry. That difference is often called basis. The absence of a recurring funding payment does not make the position costless or eliminate adverse price changes.

Work through a rollover example

Suppose a trader closes an expiring contract at 100 and opens a later contract at 102, using comparable exposure units. The difference is 2 per unit, before fees and execution effects. These are hypothetical prices, not a fixed rollover charge.

Rollover involves closing and opening positions. The two trades may not fill together at the displayed quotes. Contract multipliers and price conventions must match before subtracting prices or comparing exposure.

Distinguish expiry from liquidation

An expiry date is part of the contract schedule. Liquidation follows margin and risk rules and can occur before that date. A perpetual position can also be liquidated even though it has no scheduled expiry.

Review mark price and last price. The risk reference and the final execution price may differ; a distant expiry does not provide a safe holding period.

Match the structure to the question

Write down the intended holding period, costs that can vary and the exit or settlement plan. Compare like-for-like notional exposure rather than equal margin deposits. Historical basis or funding observations do not fix future costs.

Read funding-cost examples and continue with OrangeX.com Academy. Understanding a contract structure does not make leverage appropriate or remove loss risk.

Common questions

Does no expiry mean a position can always remain open?

No. Margin rules, contract changes and platform conditions still apply.

Are dated futures always physically delivered?

No. Settlement depends on the contract specification.

Is rollover a guaranteed fixed fee?

No. Price differences, fees and execution conditions determine its effects.