Dated futures are futures contracts that have a specific, predetermined expiration date (for example, the last Friday of the month). They let market participants agree today on a price to buy or sell an underlying asset at a future date. In crypto, the underlying can be a coin (or a cash-settled reference price), depending on the venue’s contract specification.

How dated futures work

A dated future trades continuously until it expires. Before expiration, traders can open or close positions by trading the contract, and many venues use margin to manage collateral and leverage. At expiry, the contract is settled according to the rules of that instrument, which may be physically settled (delivery of the asset) or cash settled (a payout based on a final reference price).

Dated futures vs perpetual futures

Dated futures have an end date, while perpetual futures are designed to have no expiration. Because dated futures converge to their settlement price as expiration approaches, traders often focus on basis and time-to-expiry dynamics. Perpetuals typically rely on a periodic funding mechanism to keep prices closer to spot, which is structurally different from the convergence effect in dated futures.

Key terms you will see on dated futures markets

Expiration date is the calendar date and time when the contract stops trading and is settled. Settlement price (or final reference price) is the value used to determine the final profit and loss at expiry. Contract size describes how much of the underlying (or notional value) one contract represents. Margin requirements define the collateral needed to hold the position, and they can change with volatility and venue risk controls.

Pricing, basis, and carry

The difference between a dated futures price and the spot price is often called the basis. A positive basis (futures above spot) is commonly referred to as contango, and a negative basis (futures below spot) is commonly referred to as backwardation. In many markets, basis reflects factors such as interest rates, funding and borrowing costs, demand for leverage or hedging, and expectations about future spot prices, but the exact drivers depend on the venue and contract design.

Common use cases

Hedging is a frequent use case: a miner, treasury manager, or long-term holder may use dated futures to reduce exposure to near-term price moves around a known horizon. Speculation is another use case: traders may express a directional view for a particular month or quarter. Basis trades can also be constructed by combining spot and dated futures positions to target the spread, subject to execution, financing, and liquidation risks.

Risks and practical considerations

Leverage and margin mean losses can exceed the initial collateral on some venues, and liquidation rules vary by exchange. Liquidity can differ substantially across expiries, with front-month contracts often trading more than longer-dated ones. Settlement methodology matters: index construction, cutoff times, and constituent venues can affect the final settlement price and tracking error versus a trader’s hedged exposure.

Real-world example

A market maker expects elevated volatility around a major token unlock in six weeks and wants a hedge that ends shortly after the event. They short a dated futures contract expiring the following month while keeping inventory in the underlying asset. If the spot price drops, gains on the short futures position can help offset losses on the inventory, although the hedge may not be perfect due to basis changes and settlement rules.