What Does a Positive Basis (Futures Price > Spot Price) Indicate?

A positive basis, where the futures price is higher than the spot price, indicates that the market expects the price of the underlying asset to rise or is willing to pay a premium to hold the asset via a futures contract. In traditional futures, this is often a sign of contango, reflecting the cost of carry.

In perpetual futures, a positive basis will lead to a positive funding rate, incentivizing short positions.