Basis is the difference between the spot price and the futures price of a specific commodity at a specific time and place. If you reduce it, you will lose.

If the spot price is lower than the futures price, the basis is negative; The spot price is higher than the futures price and the basis is positive. The connotation of basis is determined by the difference between transportation cost and holding cost between spot market and futures market. In other words, the basis includes two components: time and space, and the transportation cost reflects the time factor between the spot market and the futures market.