Source: https://mochatrade.com/learn/glossary/perpetual-premium

# Perpetual premium (basis)
URL: https://mochatrade.com/learn/glossary/perpetual-premium
Last modified: 2026-10-17

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](https://mochatrade.com/support/mochatrade-trading-fees-and-funding-rates-explained), and it is the gap [the Module 0 quiz leaves you asking about](https://mochatrade.com/learn/start-here/quiz).

## Related terms

- Perpetual futures: https://mochatrade.com/learn/glossary/perpetual-futures
- Funding rate: https://mochatrade.com/learn/glossary/funding-rate
- Funding rate arbitrage: https://mochatrade.com/learn/glossary/funding-rate-arbitrage
- ROE (return on equity in trading): https://mochatrade.com/learn/glossary/roe
- Bid-ask spread: https://mochatrade.com/learn/glossary/bid-ask-spread
- Cost of carry: https://mochatrade.com/learn/glossary/cost-of-carry

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