Basis vs Basis Trade

The difference between the perpetual futures price and the spot price of the underlying asset; a positive basis (futures above spot) drives positive funding; a negative basis (futures below spot) drives negative funding.

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.