Futures Expiration Cycles

Futures expiration cycles refer to the schedule of dates when derivative contracts settle and expire. Most crypto futures have daily, weekly, monthly, or quarterly expiration cycles.

As these dates approach, the price of the futures contract tends to converge with the spot price. Traders must be aware of these cycles, as they often coincide with periods of increased volatility and liquidity shifts.

Managing positions around expiration requires careful planning to either roll the position forward or settle the contract. Understanding these cycles is crucial for traders who rely on basis trading or hedging strategies.

It is a structural aspect of the market that impacts pricing and participant behavior throughout the trading month.