Well, I am sure the thought might have crossed in your mind while buying the future of any cryptocurrency – why is the price of future higher than the normal market price? It is just not you but many traders get confused about why Futures price tends to be in premium to the spot price. Traders are aware that the premium will be higher when the market is bullish and vice versa.
The article will help you in calculating the fair value of these contracts. It will be of great help to you in your next trade. Let us start!