Basis Trade vs Delta-Neutral

A market-neutral derivatives strategy that earns the funding rate premium by simultaneously holding a long spot position and an equivalent short perpetual futures position; the two legs offset each other to create a delta-neutral position that collects funding payments from the short leg.

A portfolio or position configuration in which the combined exposure to price movement is zero; achieved in basis trading by holding equal and opposite long spot and short futures positions; a delta-neutral position profits from carry income (funding rate) rather than directional price movement.