Dated Futures

Asset

Dated futures, within cryptocurrency markets, represent agreements to buy or sell a specified digital asset at a predetermined price on a future date, functioning as a forward contract standardized for exchange trading. These instruments facilitate price discovery and risk transfer, allowing participants to hedge exposure or speculate on anticipated price movements of underlying cryptocurrencies like Bitcoin or Ethereum. Their valuation relies heavily on cost of carry models, incorporating funding rates, storage costs, and convenience yields, adapted for the unique characteristics of digital asset markets.