Perpetual premium (basis)

The perpetual premium, or basis, is the gap between a perpetual's price and its reference. A positive premium means longs are crowded and will pay funding; a negative one means shorts are. Funding is set from it, and it is the gap the Module 0 quiz leaves you asking about.

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In the help centreLearn what a perpetual contract is on Mochatrade
  • Perpetual futuresPerpetual futures are contracts that track an asset's price with no expiry date. Expiry is what pulls a normal future…
  • Funding rateThe funding rate is the periodic payment between longs and shorts that keeps a perpetual near the real price: above…
  • Funding rate arbitrageFunding rate arbitrage is holding a long on one venue and a short on another in the same asset, with no view on price…
  • ROE (return on equity in trading)ROE in trading is your profit or loss as a percent of the margin you posted, not of the position. At 10x a 1% move is…
  • Bid-ask spreadThe bid-ask spread is the gap between the best price to sell (bid) and the best price to buy (ask). Buy at the ask…
  • Cost of carryCost of carry is what it costs to hold a position over time: storage, insurance and interest, minus any income. It is…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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