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Do futures expirations impact the trading volume of digital currencies?

avatarHobbs StraussDec 28, 2021 · 3 years ago3 answers

How does the expiration of futures contracts affect the trading volume of digital currencies?

Do futures expirations impact the trading volume of digital currencies?

3 answers

  • avatarDec 28, 2021 · 3 years ago
    Yes, the expiration of futures contracts can have an impact on the trading volume of digital currencies. When futures contracts are about to expire, traders may choose to close their positions or roll them over to the next contract. This can lead to increased trading activity and higher volume in the days leading up to the expiration date. Additionally, the expiration of futures contracts can also affect market sentiment and investor confidence, which can further influence trading volume.
  • avatarDec 28, 2021 · 3 years ago
    Absolutely! The expiration of futures contracts has a significant impact on the trading volume of digital currencies. As the expiration date approaches, traders become more active in the market, resulting in increased trading volume. This is because traders need to either close their positions or roll them over to the next contract, which leads to more buying and selling activity. So, if you're looking to capitalize on higher trading volume, keep an eye on futures expirations!
  • avatarDec 28, 2021 · 3 years ago
    Yes, futures expirations do impact the trading volume of digital currencies. At BYDFi, we've observed that as futures contracts near their expiration date, there is usually a surge in trading volume. This is because traders need to make decisions about their positions and adjust their strategies accordingly. The expiration of futures contracts can create opportunities for both short-term and long-term traders, as the increased volume often leads to higher volatility and potential profit opportunities.