Definition
Positive basis = perp trades above spot (longs paying funding). Negative basis = perp trades below spot. Basis collapses to zero when funding does its job. Watching basis tells you about market positioning bias.
Basis
The difference between the perp price and the spot price.
Frequently asked questions
What is Basis?
Positive basis = perp trades above spot (longs paying funding). Negative basis = perp trades below spot. Basis collapses to zero when funding does its job. Watching basis tells you about market positioning bias.