Basis vs Premium Index

Quick comparison to help you distinguish these two crypto terms.

Basis
intermediate
strategy

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.

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Premium Index
intermediate
strategy

The percentage difference between the mark price and the index price; the primary component of the funding rate calculation; reflects the balance of demand between long and short sides of the perpetual futures market.

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