Why is there such a big price difference between spot and contracts? What is the underlying logic? 🎈 (Useful tips for beginners)

First of all, you can think of spot and contracts as two different currencies, one Bitcoin and one Dogecoin. Can the prices of these two currencies be the same? Why should they be the same?

Then the exchange forces the prices of these two currencies to be the same; how do they achieve this? As I mentioned before, it's through funding rates. They encourage you to buy, encourage you to sell, discourage you from buying, and discourage you from selling, using these methods to force the prices of the two currencies to be the same.

The underlying logic is determined by the market. Your encouragement and discouragement are just one aspect; I also need to follow that, which means the incentive system is not strong enough, and you should raise the funding rate. That would make it reasonable.

If it rises too sharply, well, the market's judgment determines it, right? Encouragement and discouragement work together; encouragement and discouragement are still not enough, just a bit more and it will be the same. The price is determined by trading; it is determined by trading. What else do you have to say?