Understanding Continuous Futures in Crypto Trading

By: Isha Das

The launch of 'Continuous Futures' contracts by Cboe Global Markets marks a significant innovation in the cryptocurrency trading landscape. These contracts, set to commence on December 15, 2023, provide traders with a new mechanism to maintain long-term exposure to major cryptocurrencies such as Bitcoin and Ethereum without the periodic need to manage expiring contracts.

Traditional futures contracts come with a settlement date, forcing traders to either close or roll over their positions, often resulting in added transaction costs and the need for active management. In contrast, continuous futures mimic perpetual swaps with daily cash adjustments, offering a seamless experience for traders looking to sustain positions over an extended period.

This development caters to the growing interest among both retail and institutional investors seeking regulated and strategic ways to invest in digital currencies without the regulatory ambiguities and market volatility often associated with cryptocurrency investments.

Cboe's move into continuous futures is aligned with its strategy to enhance financial derivatives tailored for the evolving digital currency ecosystem, thereby innovating the traditional market framework and encouraging broader institutional adoption.

Overall, the introduction of these contracts exemplifies the blending of traditional finance with cryptocurrency trading, providing new long-term financial vehicles for investment portfolios. For additional insights into cryptocurrency futures, consider exploring established financial resources and crypto asset platforms.