Binance Futures can be divided into three markets:
- USDS-M Futures Market: Trading perpetual USDT futures, delivery-settled USDT futures, and perpetual BUSD futures.
- COIN-M Futures Market: Trading perpetual and delivery-settled COIN-M futures.
- Options Market: Trading options on BTC, ETH, and BNB.
Delivery-settled contracts have a specific lifespan and are settled by receiving the underlying asset upon expiration. Binance Futures offers quarterly delivery-settled futures that last three months before expiration.
Perpetual futures, on the other hand, have no expiration and do not involve the delivery of the asset. Perpetual futures are associated with a funding mechanism that keeps their price in line with the spot market price of the underlying asset, preventing divergences. When holding a position in a perpetual futures contract, traders may receive or pay funding depending on the market conditions. Funding also operates on Binance Futures, and some traders incorporate this mechanism into their strategies.