📘 Daily Trading Lesson – Episode 11
December 22, 2025 by #Hamayoon_1
💡 Deep Basis – Large Gap Between Spot and Futures Prices
🎯 Lesson Objective
Learn what it means when the price gap between spot and futures becomes very large:
• Why we should not rush
• When waiting is the best strategy
• What message the market is sending
📌 Market Situation (Real Example – BEAT)
• Spot / Index price: 4.07
• Futures price: 4.70
📈 Result:
A deep basis gap in BEAT
This means BEAT futures are trading at a large premium compared to the spot market.
🔍 What does this situation show?
1️⃣ Strong short pressure
Traders are selling futures cheap, expecting the price to drop further.
2️⃣ Sellers control the market
Shorts are dominant, and downward pressure is still strong.
3️⃣ Market not ready for longs
Entering a long now is risky, as the correction is likely not complete.
⚠️ Why we don’t rush into positions here
If we enter too fast:
• A pullback becomes more likely
• The basis can expand further before correcting
• Late entries = higher risk and stop-outs
📌 In this situation, waiting is a strategy, not weakness.
⏳ When does waiting end?
We wait for these signs:
✔️ The basis starts to shrink
✔️ Futures price moves closer to spot
✔️ Long pressure weakens
✔️ The market shows balance
Only then do we move into the decision phase.
🧠 Golden Rule – Lesson 11
❗ When the gap between spot and futures is very large,
the market has not made its final decision yet.
