How Is the Spot Price of the Underlying Crypto Asset Related to the Perpetual Futures Price?
The spot price and the perpetual futures price are closely related through an arbitrage mechanism driven by the funding rate. The funding rate incentivizes traders to buy or sell the perpetual future to push its price back toward the spot price.
In an efficient market, the perpetual futures price should track the spot price very closely, deviating only by the cost of carry.
