Bitcoin has long stood as the flagship cryptocurrency, renowned for its decentralized nature, scarcity, and growing adoption across global financial markets. As investor interest deepens, bitcoin contract trading has emerged as a powerful tool for hedging risk, leveraging market movements, and maximizing returns. But many beginners wonder: how long can you hold a bitcoin contract before selling? And more importantly—how do you actually trade bitcoin contracts?
This comprehensive guide breaks down everything you need to know about bitcoin futures trading—from holding periods and contract types to step-by-step instructions and essential rules.
How Long Can You Hold a Bitcoin Contract Before Selling?
The answer depends on the type of contract you're trading. Unlike traditional stocks or spot crypto purchases, bitcoin contracts come with different structures that determine when—and how—you can exit your position.
There are three primary types of bitcoin contracts:
- Perpetual Contracts
- Delivery (Futures) Contracts
- Options Contracts
Let’s explore each in detail.
1. Perpetual Contracts
Perpetual contracts, often called "perps," have no expiration date. This means you can hold your position indefinitely—whether for minutes, days, or even weeks—depending on your strategy and margin levels.
- ✅ Can be closed at any time
- ❌ No forced settlement unless liquidated
- 📌 Funding fees apply every 8 hours (at 04:00, 12:00, 20:00 GMT+8), which may impact long-term holds
👉 Discover how perpetual contracts work with real-time tools and deep market liquidity.
Because there’s no expiry, traders use perpetuals for both short-term speculation and longer-term directional bets. However, if your account equity drops below the maintenance margin level due to adverse price moves, your position will be automatically liquidated.
2. Delivery (Futures) Contracts
These are time-bound futures contracts with a fixed settlement date, such as weekly, bi-weekly, quarterly, or even bi-quarterly cycles.
- ✅ Can be closed anytime before expiration
- ⏳ Automatically settles at expiry based on the index price
- 📅 Common cycles: This Week, Next Week, This Quarter, Next Quarter
If you don’t close your position before the delivery time, the contract will settle in cash (or physical delivery, depending on the platform), and your profit or loss will be realized.
This structure is ideal for traders who want to align their bets with specific macroeconomic events or market cycles.
3. Options Contracts
Bitcoin options give you the right—but not the obligation—to buy or sell bitcoin at a predetermined price by a certain date.
- ✅ Can be sold (closed) at any time before expiry
- ⏰ Expires worthless if out-of-the-money at maturity
- 🔐 Premium paid upfront; limited downside risk
Options offer flexibility and defined risk profiles, making them popular among advanced traders looking to hedge positions or execute complex strategies like spreads and straddles.
Do Bitcoin Contracts Have Time Limits?
Yes—but it depends on the contract type.
- Perpetual contracts: No time limit
- Delivery contracts: Fixed expiry (e.g., every Friday or quarterly)
- Options: Expiry date applies; must act before deadline
In contrast, spot trading has no expiration—you can hold actual BTC forever. But with derivatives like futures and options, timing matters. Always check the contract specifications before opening a position.
Platforms typically display countdown timers and settlement details directly on the trading interface to help users stay informed.
How to Trade Bitcoin Contracts: Step-by-Step Guide
Trading bitcoin contracts might seem complex at first, but once you understand the mechanics, it becomes intuitive. Below is a streamlined walkthrough using one of the leading platforms (name omitted per guidelines).
Getting Started: Account Setup
- Register an account using your email and phone number
- Complete identity verification (KYC) to unlock full trading features
- Deposit funds into your trading account (USDT or BTC are commonly used)
Ensure your password meets security standards: 8–32 characters with uppercase, lowercase, numbers, and symbols.
Configuring Your Trading Account
Before trading:
- Switch to Single-Currency Margin Mode or Cross-Currency Margin Mode
- Choose between coin-margined (BTC-backed) or USDT-margined contracts
- Customize your interface: select professional layout, set default leverage, enable price alerts
👉 Access advanced contract trading tools with real-time analytics and risk controls.
Placing a Trade: Buy or Sell?
Once funded and configured:
- Navigate to the Derivatives section
- Select Perpetual or Delivery contracts
- Pick your symbol (e.g., BTC/USDT)
Choose direction:
- Buy Open Long (Go Long) – Bet on price rising
- Sell Open Short (Go Short) – Bet on price falling
Set order type:
- Limit Order
- Market Order
- Stop-Limit / Take-Profit & Stop-Loss
After execution, your position appears under “Positions” with key metrics:
- Entry price
- Leverage
- Margin used
- Unrealized P&L
- Estimated liquidation price
You can adjust stop-loss and take-profit levels anytime—or close the entire position instantly via Market Close.
Key Rules of Perpetual Contract Trading
Understanding the mechanics behind perpetual contracts is crucial for success.
1. Trading Hours
Perpetual contracts trade 24/7, with brief interruptions during funding settlements every 8 hours (04:00, 12:00, 20:00 GMT+8). Trading resumes once settlement completes—by asset class—so other coins may remain active during BTC’s downtime.
2. Order Types Explained
| Type | Description |
|---|---|
| Limit Order | Set your own price; stays open until filled |
| Post Only | Ensures you’re always the maker (avoids taker fees) |
| Immediate or Cancel (IOC) | Fills immediately or cancels remainder |
| Fill or Kill (FOK) | Must fill entire amount now—or reject |
| Market Order | Executes instantly at best available price |
| Stop-Limit / Trigger Orders | Activates when price hits a threshold |
| Best N Levels (5/10/20) | Snaps to top N bid/ask prices for fast fills |
| Lightning Close | Uses Best 30 Levels to exit rapidly in volatile markets |
3. Position Management
- Only one long and one short position per contract type
- Multiple entries are averaged into a single cost basis (using moving average method)
- Example: Buy 1 BTC contract at $10,000 + another 2 at $15,000 → average entry ≈ $12,857
This simplifies tracking but removes granular control over individual entries.
Frequently Asked Questions (FAQ)
Q1: Can I hold a bitcoin perpetual contract forever?
Yes. Perpetual contracts have no expiry date. However, funding fees occur every 8 hours and can accumulate over time. Also, insufficient margin may lead to liquidation.
Q2: What happens if I don’t close a delivery contract before expiry?
It will be automatically settled based on the final index price. Profits or losses are credited/debited accordingly.
Q3: Are bitcoin options available on all platforms?
No. While major exchanges offer options, availability varies by region and account tier. Always confirm product access before planning strategies.
Q4: How is profit calculated in contract trading?
Profit = (Exit Price – Entry Price) × Contract Size × Number of Contracts
For USDT-margined trades, gains are in stablecoin; for coin-margined, they’re paid in BTC.
Q5: What causes a position to get liquidated?
When losses erode your margin below the maintenance threshold. The system then forcibly closes the trade to prevent further losses.
Q6: Is contract trading suitable for beginners?
It carries high risk due to leverage. Beginners should start small, use demo accounts, and fully understand margin mechanics before going live.
Final Thoughts
Bitcoin contract trading opens doors to strategic opportunities beyond simple buying and holding. Whether you're day trading with perpetuals or hedging with quarterly futures, understanding contract types, holding periods, and execution methods is essential.
With proper risk management, clear goals, and disciplined execution, contract trading can become a valuable part of your digital asset strategy.
👉 Start practicing with powerful trading tools and secure infrastructure today.