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== How Do Crypto Futures Expiration Dates Work? == When trading crypto futures, you need to be aware of the expiration date to avoid unexpected outcomes. Here’s how it works: 1. **Contract Creation**: A futures contract is created with a specific expiration date. 2. **Trading Period**: Traders buy and sell the contract until the expiration date. 3. **Expiration**: On the expiration date, the contract is settled based on the agreed terms. For example, if you buy a Bitcoin futures contract expiring in one month, you agree to buy Bitcoin at a specific price on that date. If the price of Bitcoin is higher at expiration, you profit; if it’s lower, you incur a loss.
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