What is the impact of gross basis on cryptocurrency trading?

3 answers

• Skinner SternFeb 23, 2024 · 2 years ago
  The impact of gross basis on cryptocurrency trading is significant. Gross basis refers to the difference between the spot price of a cryptocurrency and the futures price. When the gross basis is positive, it indicates that the futures price is higher than the spot price, creating an opportunity for arbitrage. Traders can buy the cryptocurrency at the spot price and sell it in the futures market, making a profit from the price difference. This can lead to increased trading volume and liquidity in the market. However, if the gross basis is negative, it means that the futures price is lower than the spot price. In this case, traders may sell the cryptocurrency in the spot market and buy it back in the futures market, causing downward pressure on the spot price. Overall, the impact of gross basis on cryptocurrency trading depends on the market conditions and the actions of traders.
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• Lukas NeubauerDec 29, 2021 · 4 years ago
  The impact of gross basis on cryptocurrency trading can be both positive and negative. When the gross basis is positive, it provides an opportunity for traders to profit from arbitrage. This can attract more participants to the market and increase trading activity. On the other hand, when the gross basis is negative, it can create selling pressure on the spot market as traders try to take advantage of the price difference. This can lead to increased volatility and potentially lower prices. It's important for traders to monitor the gross basis and understand its implications for their trading strategies.
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• İBRAHİM YÜMLÜAug 01, 2025 · a month ago
  The impact of gross basis on cryptocurrency trading is a topic of interest for many traders. It can affect the overall market dynamics and trading strategies. When the gross basis is positive, it indicates a potential opportunity for traders to profit from price discrepancies between the spot and futures markets. This can lead to increased trading volume and liquidity. However, when the gross basis is negative, it can create selling pressure on the spot market and potentially lead to price declines. Traders need to carefully analyze the gross basis and consider its impact on their trading decisions.
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