A TradingView indicator that calculates and visualizes the price premium or discount between a cryptocurrency's spot and perpetual futures markets on Binance.
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The indicator automatically detects whether the current chart symbol represents a spot or perpetual futures market by checking for the '.P' suffix. It retrieves the closing prices for both markets using the request.security function, which allows accessing price data for different symbol variants.
Once the spot and perpetual prices are obtained, the script calculates the premium or discount percentage by comparing the two prices. This calculation provides traders with a clear numerical representation of the price difference between the spot and futures markets.
Why it may be useful
Understanding the price differential between spot and perpetual futures markets can provide valuable insights into market sentiment and potential trading opportunities. The premium or discount percentage can indicate market expectations, potential arbitrage opportunities, and the overall market's perception of the asset's future price.
By visualizing this difference through color-coded histogram bars, traders can quickly identify whether the perpetual futures market is trading at a premium (green) or discount (red) compared to the spot market, enabling more informed trading decisions.
When to explore it
This indicator is most effective for cryptocurrency traders actively monitoring Binance markets and seeking to understand the relationship between spot and perpetual futures prices. It is particularly useful during periods of market volatility or when assessing potential arbitrage opportunities.
Traders can use this signal to gauge market sentiment, identify potential pricing inefficiencies, and make more informed trading decisions across different cryptocurrency derivatives markets.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
