The basis of futures is only bullish, and a positive basis means that the spot price is higher than the futures price, which also means that there is a shortage of spot materials, which will lead to a shortage of market supply, so multiple futures contracts can be made. A negative basis indicates that the spot price is lower than the futures price, while a low spot price indicates that there are too many spot goods in stock at this time, which will lead to oversupply, and futures contracts can be shorted.

Futures basis refers to the difference between the current futures price and the spot price. Basis = spot price-futures price.