How does the expiry date affect the price of digital assets?
ADARSH RAJDec 17, 2021 · 3 years ago1 answers
Can you explain how the expiry date of digital assets impacts their price? I'm curious to know if there is a significant correlation between the expiry date and the value of these assets. Does it vary depending on the type of digital asset or the platform it is traded on?
1 answers
- Dec 17, 2021 · 3 years agoAt BYDFi, we believe that the expiry date of digital assets can have a significant impact on their price. As an exchange, we have observed that as the expiry date approaches, there is often an increase in trading volume and price volatility. This can be attributed to traders and investors adjusting their positions or taking advantage of arbitrage opportunities. The expiry date serves as a deadline for traders to close their positions or roll them over to the next expiry date. This can result in increased buying or selling pressure, which can impact the price of the digital asset. It's important for traders to stay informed about the expiry dates of the assets they are trading and consider the potential impact on price when making trading decisions.
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