How does futures expiration affect the trading volume of cryptocurrencies?

3 answers

• ParasDec 06, 2023 · 2 years ago
  Futures expiration can have a significant impact on the trading volume of cryptocurrencies. When futures contracts are about to expire, traders who hold these contracts have to decide whether to close their positions or roll them over to the next contract. This decision-making process often leads to increased trading activity as traders adjust their positions. Additionally, the expiration of futures contracts can create price volatility, attracting more traders to the market and increasing the overall trading volume of cryptocurrencies.
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• PrabhakarJun 09, 2021 · 4 years ago
  Futures expiration affects the trading volume of cryptocurrencies in a couple of ways. Firstly, it creates a sense of urgency among traders who hold expiring contracts, leading to increased trading activity. Secondly, the expiration of futures contracts can serve as a catalyst for price movements, attracting both speculators and hedgers to the market. These factors combined can result in a surge in trading volume for cryptocurrencies around the time of futures expiration.
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• GerhardMar 20, 2025 · 5 months ago
  From my experience at BYDFi, I've observed that futures expiration does impact the trading volume of cryptocurrencies. As futures contracts approach their expiration date, traders tend to become more active in the market, leading to higher trading volumes. This increased activity is driven by the need to manage expiring positions and take advantage of potential price movements. It's important for traders to closely monitor the expiration dates of futures contracts to capitalize on trading opportunities and navigate the potential impact on trading volume.
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