Skip to main content

Are Traditional Crypto Futures Less Volatile than Perpetuals?

The underlying asset's price movement determines the volatility of both traditional and perpetual crypto futures. However, perpetual futures often exhibit higher short-term volatility due to the high leverage they enable and the funding rate mechanism, which can cause rapid price swings near funding times.

Traditional futures, especially those nearing expiration, can also be volatile due to convergence.

Is It Possible for a Short-Term OTM Option to Have a Higher Absolute Theta than a Long-Term ITM Option?
How Does the ‘Order Book Depth’ Visualize the Liquidity Difference That Causes the Spread Disparity between the Two Asset Classes?
How Can a Trader Use the Funding Rate to Execute a ‘Funding Rate Arbitrage’ Strategy?
What Is “Implied Volatility” in Options Trading?