How can the same coin have several contracts, all with different prices?
Definition: Delivery contracts don’t pay or receive funding fees. The price difference between a contract and the spot price is called the basis. The closer the contract is to expiry, the smaller the basis generally becomes.
Why: Delivery contracts bring their prices in line with spot through settlement at expiry. Perpetual contracts don’t expire, so funding fees serve a similar anchoring function.
Compare with the market: $BTC is quoted at 83022 (24h +0.62%).
Leverage magnifies the outcome; it doesn’t make your judgment more accurate. The higher the leverage, the less room you have for error.
Don’t treat this as a basis for trading decisions.
Definition: Delivery contracts don’t pay or receive funding fees. The price difference between a contract and the spot price is called the basis. The closer the contract is to expiry, the smaller the basis generally becomes.
Why: Delivery contracts bring their prices in line with spot through settlement at expiry. Perpetual contracts don’t expire, so funding fees serve a similar anchoring function.
Compare with the market: $BTC is quoted at 83022 (24h +0.62%).
Leverage magnifies the outcome; it doesn’t make your judgment more accurate. The higher the leverage, the less room you have for error.
Don’t treat this as a basis for trading decisions.