A spot premium refers to the difference between the price of an asset in the spot market and its price in a futures or forward market. When the spot price is higher than the futures price, a positive premium exists, often indicating strong immediate demand or scarcity. Conversely, a negative premium suggests the opposite market condition.
Context
Spot premiums are closely monitored indicators in digital asset markets, particularly for assets like Bitcoin and Ethereum. Their fluctuations can signal immediate market pressures, such as increased demand for physical delivery or arbitrage opportunities. News reports often discuss spot premiums in relation to the cost of acquiring assets directly versus through derivative contracts, impacting trading strategies and market liquidity.
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