Derivatives & Risk

What is basis in crypto futures?

Basis in crypto futures is the difference between a futures contract's price and the current spot price of the underlying asset. When futures trade above spot the basis is positive, often reflecting financing costs or bullish positioning; when below spot it is negative. For example, if the spot price is 100 and the three-month future trades at 104, the basis is 4. Basis tends to narrow as the contract approaches expiry, when futures and spot converge. Traders watch it to gauge market positioning and the cost of holding a position.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.