Crypto Basis Trade Interview Guide
Crypto basis trade interview guide for spot-futures basis, perpetual funding, carry, financing, execution, liquidation, and caveats.
Candidates discussing relative value and derivatives in digital-asset markets.
Basis compares related prices
A crypto basis trade compares spot with futures or perpetual pricing. The spread can reflect funding, financing, demand, collateral, and venue constraints.
Implementation drives risk
Execution fees, borrow, collateral, liquidation rules, transfer timing, and venue reliability can dominate a basis that looks attractive on a chart.
Concrete example
Long spot and short futures may target convergence, but the trade can lose if basis widens, funding changes, collateral is stressed, or one leg cannot be exited.
Carry needs assumptions
Carry calculations should state horizon, fees, funding path, financing, and mark-to-market treatment. Avoid assuming a spread closes just because it has before.
Common mistakes
Candidates often call basis trades arbitrage. A better answer explains residual market, funding, liquidity, margin, and operational risks.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.