🔥 The nitty-gritty of futures trading: perpetual and delivery contracts
The premium of a delivery contract over spot is generally understood to reflect funding costs and market sentiment between bulls and bears; it does not predict the price at expiration.
If you hold a perpetual contract for a long time, factor the accumulated funding fees into your costs—don’t just look at price movements.
Quick look: $BTC current price 83498.85 (24h +1.16%).
Have you ever run into a similar pitfall? Share it so others can avoid the same mistake.
#BTC
Just for reference; trade at your own risk.
The premium of a delivery contract over spot is generally understood to reflect funding costs and market sentiment between bulls and bears; it does not predict the price at expiration.
If you hold a perpetual contract for a long time, factor the accumulated funding fees into your costs—don’t just look at price movements.
Quick look: $BTC current price 83498.85 (24h +1.16%).
Have you ever run into a similar pitfall? Share it so others can avoid the same mistake.
#BTC
Just for reference; trade at your own risk.