I'm curious to understand why contract prices often deviate from spot prices. What factors contribute to this difference, and how does it impact the market?
7 answers
EchoWhisper
Tue Dec 17 2024
In cases where the contract market has lower liquidity, transactions become more sensitive to large orders.
Riccardo
Tue Dec 17 2024
Such large orders can cause significant price fluctuations in the contract market.
BenjaminMoore
Tue Dec 17 2024
Leveraged trading introduces an extra layer of volatility in the market.
Stefano
Tue Dec 17 2024
This volatility leads to discrepancies between contract prices and spot prices.
DigitalTreasureHunter
Tue Dec 17 2024
Participants in the contract market may have differing market sentiments and demands compared to those in the spot market.