Continuous futures, within cryptocurrency trading, represent a synthetic perpetual contract constructed by stitching together a series of expiring futures contracts to create an unbroken price feed. This instrument provides a long-term perspective on an asset’s price movements. It removes the need for traders to roll positions manually between successive contract expirations.
Mechanism
The mechanism typically involves algorithms that automatically roll a trader’s position from the front-month contract to the next available contract as expiration approaches. This adjustment accounts for differences in pricing and volume. The process abstracts away the complexities of contract expiry, presenting a single, uninterrupted price series derived from the most liquid or nearest-term futures contracts.
Methodology
The methodology facilitates technical analysis and strategy backtesting across extended periods by removing the discontinuity associated with individual contract expirations. Traders employ continuous futures for directional speculation, hedging, and algorithm development. This benefits from simplified position management and a consistent data stream that reflects underlying market sentiment over time.
Cboe's continuous futures contracts provide a robust framework for institutional investors to manage long-term digital asset exposure within a regulated market.
This initiative establishes a robust, regulated framework for extended-duration digital asset derivatives, enhancing market access and operational efficiency for institutional participants.
This initiative introduces a regulated framework for perpetual-style crypto derivatives, enhancing institutional access and capital efficiency within the digital asset ecosystem.
This initiative introduces a robust, long-dated derivatives framework, enhancing capital efficiency and strategic risk management for institutional digital asset portfolios.
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