Derivatives Expiry Cycles

Derivatives expiry cycles refer to the regular intervals at which derivative contracts expire and require settlement. These cycles dictate the rhythm of market activity, as participants prepare for expiration, adjust their hedges, and roll their positions.

In the cryptocurrency space, monthly or quarterly expiry cycles often serve as focal points for market volatility and trend shifts. Understanding these cycles allows traders to plan their strategies around known periods of increased activity.

It is a foundational element of market microstructure that impacts liquidity and price discovery. By analyzing the behavior across different cycles, traders can gain a deeper understanding of market maturity and institutional involvement.