📚 Simple Understanding of Futures Price Difference
Price Difference = Futures Price ≠ Spot Price (actual market price)
Spot Price: The price for immediate buying/selling in the market (e.g., the current BTC price is 63,000 USD).
Futures Price: The price of the futures contract. This price can be higher or lower than Spot, depending on market sentiment and funding rate.
🎯 When is there a difference?
When the market is very enthusiastic (bull market) → Futures Price is higher than Spot.
When the market is pessimistic (bear market) → Futures Price may be lower than Spot.
Real-life example:
BTC Spot: 63,000 USD
BTC Futures contract: 64,000 USD
Difference: 1,000 USD
👉 You see the Futures price is higher than the Spot → Arbitrage opportunity.
🧠 How to take advantage of the difference:
Step 1:
Sell Futures (because Futures are expensive).
Buy Spot (because Spot is cheaper).
Step 2: Wait until the Futures expiration date or when the Futures and Spot prices balance out.
Step 3: Take profit from the price difference.
📢 Real battle example:
BTC Spot Price = 63,000 USD
BTC Futures Price (3-month contract) = 64,200 USD
Futures funding rate = +0.02% every 8 hours
You: Buy 1 BTC Spot at 63,000 USD.
At the same time, sell 1 BTC Futures at 64,200 USD.
After 2 months, Futures expire, and both Spot and Futures prices return to 63,500 USD.
👉 You earn:
(Futures selling price - Spot buying price) = 64,200 – 63,000 = 1,200 USD profit (minus fees).
