

What does the currency circle contract delivery mean? What is the difference between a quarterly contract and a perpetual contract?
Jul 11, 2025 pm 08:30 PMIn the digital currency trading market, contract trading is an important derivative trading method. It allows traders to speculate on the future prices of specific digital assets without actually holding them. One of the core of the contract trading mechanism is delivery. For different types of contracts, the mechanism and impact of delivery are also different. Understanding these concepts is essential for participating in contract trading.
The meaning of contract delivery
1. Contract delivery refers to the process in which both parties to the transaction settle positions according to the contract provisions when the contract expires.
2. In traditional financial markets, delivery of commodities or stock index futures may involve transfers of physical or cash.
3. In standardized futures contracts in the currency circle, delivery is usually carried out in cash settlement , that is, profit and loss are calculated based on the market price at the time of the contract expiration, and directly reflected in the trader's account balance.
4. The delivery date is the end date of the life cycle of a specific contract, and all open contract positions are settled at the specified price on this day.
Characteristics of quarterly contracts
1. Quarterly contracts have clear expiration dates and are usually named after quarters, such as BTC quarters, BTC quarters, etc.
2. When the contract expires, all open quarterly contract positions will be forced to close and settle according to the delivery price set by the exchange.
3. Traders can choose to close positions at any time before expiration to avoid forced settlement during delivery.
4. There may be a basis for the price of the quarterly contract and the spot price, that is, the difference between the contract price and the spot price. As the contract approaches expiration, the basis usually gradually converges .
Characteristics of a Perpetual Contract
1. Perpetual contracts are a type of contract without an expiration date . Traders can hold positions indefinitely unless a forced closing or active closing is triggered.
2. In order to make the price of perpetual contracts closely anchor the spot price, a funding rate mechanism has been introduced.
3. The capital fee rate is settled every period of time (usually 8 hours). According to the degree of deviation between the perpetual contract price and the spot index price , both long and short parties pay each other's fees.
4. When the price of a perpetual contract is higher than the spot index price, the long pays the short capital fee; when the price of a perpetual contract is lower than the spot index price, the short pays the long capital fee. This mechanism encourages prices to move closer to spot.
The main differences between quarterly contracts and perpetual contracts
1. Expiry time : The quarterly contract has a fixed expiration date, and the perpetual contract has no expiration date.
2. Settlement mechanism : Forced delivery and settlement are made when the quarterly contract expires, and perpetual contracts maintain price anchoring through periodic fee exchange through the capital rate mechanism.
3. Position cost : When holding a quarterly contract expires, it may face uncertainty about delivery, and the main cost or benefit of holding a perpetual contract is the capital fee rate.
4. Price anchoring : Quarterly contract prices achieve correlation with spot prices through the basis convergence when they are close to expiration. Perpetual contracts mainly rely on the capital rate mechanism to anchor spot prices.
The above is the detailed content of What does the currency circle contract delivery mean? What is the difference between a quarterly contract and a perpetual contract?. For more information, please follow other related articles on the PHP Chinese website!

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