How does futures expiry affect the trading volume of digital currencies?
harshit modiJan 14, 2022 · 3 years ago3 answers
Can you explain how the expiry of futures contracts impacts the trading volume of digital currencies?
3 answers
- Jan 14, 2022 · 3 years agoWhen futures contracts are about to expire, traders often close their positions, which can lead to increased trading volume in digital currencies. This is because traders may want to avoid the delivery of the underlying asset and prefer to settle their positions in cash. As a result, there is usually a surge in trading activity as the expiry date approaches.
- Jan 14, 2022 · 3 years agoFutures expiry can have a significant impact on the trading volume of digital currencies. Traders who hold futures contracts may choose to roll over their positions to the next contract, which can result in increased trading volume. Additionally, the expiry of futures contracts can create opportunities for arbitrage, leading to higher trading activity.
- Jan 14, 2022 · 3 years agoAt BYDFi, we've observed that the expiry of futures contracts can have a notable effect on the trading volume of digital currencies. As the expiry date approaches, traders tend to adjust their positions, which can result in increased trading volume. It's important for traders to closely monitor the expiry dates of futures contracts to make informed trading decisions.
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