Why Nostr? What is Njump?
2024-06-09 00:23:52
in reply to

8r0ck3feller on Nostr: I’m thinking on the fly… If they’re buying spot bitcoin today in order to sell ...

I’m thinking on the fly…

If they’re buying spot bitcoin today in order to sell it into a future’s contract, then the future price must be greater than today’s price. Because the arbitrage opportunity (future - spot) has to not only generate a profit but also account for their financing cost of holding the bitcoin during that period of time.

Also, wouldn’t one think that in such a trade there is MORE demand in today’s spot market which would drive today’s price UP while the future’s price would go down?
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