A No-Expiry Structure refers to a financial instrument or contract that does not have a predetermined expiration date, allowing it to remain active indefinitely unless closed by one of the parties. In digital asset derivatives, perpetual swaps are a prominent example, providing continuous exposure to an underlying asset without the need for periodic rollovers. This design offers flexibility and reduces administrative overhead for traders.
Context
The widespread adoption of no-expiry perpetual swaps has significantly shaped the liquidity and trading dynamics of cryptocurrency derivatives markets. A key discussion involves the funding rate mechanism, which helps anchor the perpetual swap price to the spot price, and its impact on market sentiment. Future developments include the introduction of more innovative no-expiry products and the refinement of their underlying pricing and risk management models to better suit diverse market conditions.
Integrating exchange-cleared perpetual futures enables institutional traders to manage digital asset portfolio risk with superior capital efficiency and precision.
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