What Is Quarterly Futures?
Quarterly futures are standardized futures contracts that expire on fixed dates each quarter (typically the last Friday of March, June, September, and December). Unlike perpetual futures, they have a defined expiration date at which the position is settled — either by cash settlement or physical delivery of the underlying asset.
How Quarterly Futures Works
Quarterly futures trade at a premium or discount to spot price based on the cost of carry and market sentiment. In bullish markets, quarterlies trade at a premium (contango) because buyers are willing to pay more for future delivery. In bearish markets, they may trade at a discount (backwardation). The premium typically narrows as expiration approaches, converging with spot price at settlement.
Why It Matters for Traders
The quarterly futures basis (premium over spot) is one of the most informative metrics in crypto markets. A high annualized basis (above 20%) signals extreme bullish positioning; a low or negative basis signals bearish sentiment. Cash-and-carry arbitrage (long spot, short quarterly futures) captures the basis as risk-free yield, making quarterly futures the foundation of many institutional strategies.
