@glikman
1/3
Hi friends, I hope you continue trading with @vooi-app like me. Today let's discuss the impact of futures expiration on trading behavior. If you still think of expiration as an “automatic close”, you may be missing the most interesting thing.
In futures trading, contract expiration is not just a technical date. It's the moment when masses of speculators, algorithms, and big players converge at a single time node that distorts market behavior.
Futures is a futures contract. It has a finite expiration date. On the expiration date, the trader must either close out the position, take delivery (if the contract is deliverable), or move to the next futures contract.
The market often starts to distort in advance
Speculators and funds gradually move to the next contract (rollover) and liquidity goes away. In a thin market, even small bids can move the price. This often creates false breakdowns and abnormal volatility.