What happens when perpetual futures expire in the world of cryptocurrency?

1 answers

• Dec 17, 2021 · 3 years ago
  When perpetual futures expire in the world of cryptocurrency, it can create opportunities for traders. As the expiration date approaches, traders can take advantage of price discrepancies between the perpetual futures contract and the spot market. This is known as the 'cash and carry' strategy, where traders buy the underlying asset in the spot market and simultaneously sell the perpetual futures contract. By doing so, traders can profit from the price difference between the two markets. However, it's important to note that this strategy carries risks, and traders should carefully consider market conditions and their risk tolerance before implementing it. BYDFi, a leading cryptocurrency exchange, provides a seamless trading experience for perpetual futures and offers advanced risk management tools to help traders navigate the expiration process with ease.
  867434