How does basis calender affect the pricing of cryptocurrencies?

3 answers

• Auxiliar SistemasFeb 24, 2024 · a year ago
  Sure! The basis calendar refers to the schedule of futures contracts expiration dates in the cryptocurrency market. These expiration dates can have an impact on the pricing of cryptocurrencies because they affect the supply and demand dynamics. When a futures contract is about to expire, traders who hold the contract need to either close their positions or roll them over to the next contract. This process can create buying or selling pressure on the underlying cryptocurrency, which can influence its price. Additionally, the basis, which is the difference between the spot price and the futures price, can also be affected by the expiration dates. Traders closely monitor the basis calendar to anticipate potential price movements and adjust their trading strategies accordingly.
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• Sarah RoweFeb 04, 2021 · 4 years ago
  The basis calendar plays a crucial role in the pricing of cryptocurrencies. As futures contracts approach their expiration dates, traders need to make decisions about their positions. If a large number of traders decide to close their positions, it can lead to increased selling pressure on the cryptocurrency, which can push its price down. On the other hand, if traders roll over their positions to the next contract, it can create buying pressure and drive the price up. The basis, which is the difference between the spot price and the futures price, can also be affected by the expiration dates. Traders use this information to make predictions about the future price movements of cryptocurrencies and adjust their trading strategies accordingly.
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• rajeev ahirNov 06, 2022 · 3 years ago
  The basis calendar is an important factor to consider when analyzing the pricing of cryptocurrencies. It refers to the schedule of futures contracts expiration dates, which can have a significant impact on the market dynamics. Different exchanges may have different basis calendars, which can create arbitrage opportunities for traders. For example, if one exchange's futures contract is about to expire at a higher price than another exchange's spot price, traders can buy the cryptocurrency on the spot market and sell it on the futures market, profiting from the price difference. This arbitrage activity can help align the prices across different markets and reduce any discrepancies. However, it's important to note that the basis calendar is just one of many factors that can influence the pricing of cryptocurrencies, and traders should consider a comprehensive analysis before making any trading decisions.
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