How long can you hold a crypto futures contract?

Crypto futures have varying hold times: perpetuals allow indefinite holding with funding fees, while quarterly contracts expire every three months.

Aug 10, 2025 at 03:49 pm

Understanding Crypto Futures Contract Duration

Crypto futures contracts are derivative financial instruments that allow traders to speculate on the future price of a cryptocurrency without owning the underlying asset. The duration for which you can hold such a contract depends on the type of futures contract offered by the exchange. Unlike spot trading, where positions can be held indefinitely, futures contracts have predefined expiration dates. The length of time you can hold a futures contract is determined by the contract’s settlement schedule, which varies across platforms and products.

Most major exchanges offer two primary types of futures contracts: perpetual futures and quarterly (or dated) futures. Perpetual contracts do not have an expiration date, meaning you can hold them indefinitely, provided you meet the margin requirements and pay funding fees. In contrast, quarterly futures contracts expire on a set date, typically the last Friday of each quarter, limiting the holding period to a maximum of three months from the listing date.

Perpetual Futures: Holding Without Expiration

Perpetual futures are the most popular type of crypto futures due to their indefinite holding period. These contracts are designed to track the spot price of the underlying cryptocurrency through a mechanism called funding rates. Traders who hold perpetual contracts long-term must account for periodic funding payments, which occur every 8 hours on most platforms.

To hold a perpetual futures contract indefinitely:

• Maintain sufficient margin balance to avoid liquidation
• Monitor funding rate direction and frequency
• Adjust position size in response to market volatility
• Enable auto-top-up margin if available

Funding rates are determined by the difference between the perpetual contract price and the index price. If the funding rate is positive, long position holders pay short position holders. Conversely, if it’s negative, shorts pay longs. This mechanism ensures the contract price stays close to the spot price. Holding a perpetual contract over weeks or months is feasible, but accumulated funding fees can significantly impact profitability.

Quarterly Futures: Fixed Expiration Dates

Quarterly futures contracts have a fixed maturity date, typically the last Friday of March, June, September, and December. You can only hold these contracts until their settlement time, which is usually at 08:00 UTC on the expiration date. Once the contract expires, it is automatically settled in cash, and your position is closed.

For example, if you open a long position on a BTC 30JUN25 futures contract, you can hold it from the listing date until 08:00 UTC on 30 June 2025. After that, the contract ceases to exist. Traders who wish to maintain exposure beyond the expiration must manually roll their position into the next quarterly contract.

To manage quarterly futures effectively:

• Check the contract specifications on the exchange before trading
• Set calendar reminders for upcoming expiration dates
• Use reduce-only orders to prevent accidental opening of new positions near expiry
• Consider rolling strategies to transition into the next contract series

Some exchanges also offer monthly futures, which expire on the last Friday of each month, providing shorter-term holding options.

Impact of Leverage and Margin on Holding Period

While contract type defines the maximum holding duration, your actual holding period may be shorter due to leverage and margin requirements. High leverage increases the risk of liquidation, especially during volatile market conditions. Even with perpetual contracts, excessive leverage can force you out of a position long before you intend to exit.

To extend your holding time under leveraged conditions:

• Use lower leverage (e.g., 5x or 10x instead of 50x or 100x)
• Maintain a high maintenance margin ratio
• Enable stop-loss and take-profit orders
• Monitor mark price to avoid liquidation due to price divergence

The liquidation price is the price at which your position is automatically closed to prevent further losses. If the market moves sharply against your position, you may be liquidated even if the long-term trend supports your trade. Therefore, risk management directly influences how long you can practically hold a futures contract.

Exchange-Specific Rules and Contract Listings

Each cryptocurrency exchange sets its own rules for futures contract duration. For instance:

• Binance offers both perpetual and quarterly futures with clear expiration schedules
• Bybit provides perpetual contracts with funding every 8 hours and quarterly futures with fixed expiry
• OKX supports multiple contract types, including bi-weekly and quarterly options
• Deribit specializes in Bitcoin and Ethereum futures with monthly and quarterly expiries

Always review the contract details page on your chosen exchange. This page includes:

• Contract type (perpetual, quarterly, etc.)
• Symbol and expiry date
• Funding rate schedule (for perpetuals)
• Settlement currency (e.g., USDT, USD, or coin-margined)
• Trading fees and liquidation rules

Some platforms also offer delivery futures, which settle in the actual cryptocurrency rather than cash. These contracts still have fixed expiration dates, limiting holding time accordingly.

Strategies for Extending Effective Holding Time

Traders who want to maintain long-term exposure use specific strategies to overcome expiration limits:

• Position rolling: Close an expiring contract and open a new one in the next series
• Laddering contracts: Hold multiple contracts with different expiry dates to spread risk
• Funding rate arbitrage: Open opposite positions in perpetual and spot markets to hedge funding costs
• Cross-margin mode: Use all available balance to increase buffer against liquidation

When rolling positions:

• Place the new trade before the old contract enters settlement mode
• Compare basis spreads between contracts to avoid unfavorable entries
• Use limit orders to control entry price during the roll
• Account for transaction fees on both legs of the roll

These techniques allow traders to simulate long-term holding while complying with contract limitations.

Frequently Asked Questions

Can I hold a perpetual futures contract forever?

Yes, you can hold a perpetual futures contract indefinitely as long as you maintain the required margin and pay funding fees. There is no expiration date, but funding payments occur every 8 hours and can accumulate over time.

What happens when a quarterly futures contract expires?

The contract is automatically settled in cash at the expiration time. Your position is closed, and your profit or loss is credited to your account based on the final settlement price.

Do funding rates affect how long I can hold a perpetual contract?

Funding rates do not limit the holding period, but they impact cost. Sustained positive funding rates increase the cost of holding long positions, which may influence your decision to close the trade early.

Can I switch from a quarterly to a perpetual contract manually?

Yes, you can close your quarterly futures position and open a perpetual futures position at any time before expiration. This allows you to extend your exposure beyond the original contract’s expiry date.