What is the formula to determine the strike price of a cryptocurrency futures contract?

3 answers

• Jamer AndersonJul 06, 2025 · 7 months ago
  The formula to determine the strike price of a cryptocurrency futures contract is typically based on the current spot price of the cryptocurrency, the time to expiration of the contract, and the expected volatility of the cryptocurrency. The strike price is often set at a level that is expected to be attractive to both buyers and sellers, and it is usually adjusted periodically to reflect changes in market conditions. It's important to note that different exchanges and platforms may have slightly different formulas or methodologies for determining the strike price.
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• Afshan WaseemJun 01, 2025 · 8 months ago
  Calculating the strike price of a cryptocurrency futures contract can be a bit complex, but it generally involves taking into account the current market price of the cryptocurrency, the time remaining until the contract expires, and the expected future price movements. This information is used to determine a strike price that is fair and balanced for both buyers and sellers. Keep in mind that the strike price can vary between different exchanges and platforms, so it's always a good idea to check the specific formula or methodology used by the exchange you're trading on.
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• PAN-YANMar 13, 2025 · a year ago
  When it comes to determining the strike price of a cryptocurrency futures contract, BYDFi, a leading cryptocurrency exchange, uses a formula that takes into account the current spot price of the cryptocurrency, the time to expiration of the contract, and the expected volatility of the cryptocurrency. This formula is designed to ensure a fair and transparent pricing mechanism for all participants in the futures market. It's worth noting that different exchanges may have their own unique formulas or methodologies for determining the strike price, so it's important to do your research and understand the specific rules of the exchange you're trading on.
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