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Author: Admin | 2025-04-28
Derivatives are tradable contracts that derive their value from an underlying asset. In the case of cryptocurrency derivatives, the underlying asset is, in most cases, Bitcoin (BTC), or other top cryptocurrencies.In general, derivatives are sophisticated, generally high-risk financial instruments that are useful for managing risk via hedging.Traditional derivativesWhile traditional markets have been using various forms of derivatives for thousands of years, their modern varieties can be traced back to the 1970s and 80s, when the Chicago Mercantile Exchange and Chicago Board of Trade introduced expiry futures.The most common types of derivatives include futures, forwards, and options, which are based on a variety of assets, including stocks, currencies, bonds, and commodities. Given the sheer number of derivatives available today, the market’s size is difficult to determine, with estimates ranging from trillions to over a quadrillion dollars.Bitcoin futuresAmong crypto derivatives, Bitcoin futures were the first to go mainstream and remain the most traded in terms of volumes. BTC futures were being traded on smaller platforms as early as 2012, but it wasn’t until 2014 that growing demand prompted major exchanges, namely CME Group Inc and Cboe Global Markets Inc, to follow suit.Today, Bitcoin futures are among the most popularly traded instruments in the space, with top exchanges like OKX recording billions of dollars in volume on a daily basis.Source: theblock.coWhat is Bitcoin expiry futures?An expiry futures product is an agreement between two parties — generally two users on an exchange — to buy and sell an underlying asset (BTC, in this case) at an agreed-upon price (the forward price), at a certain date in the future.While the finer details may vary from exchange to exchange, the basic premise behind expiry futures remains the same. Here, two parties agree to lock in the price of an underlying asset for a transaction in the
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