The Time Value of MoneyBefore diving into basis trading in crypto, it is necessary to understand the time value of money. The Future Value of MoneyJack borrows $100 USD from the bank for one year, at an interest rate of 10%. Basis (B) = Future Price (F) – Spot Price (S)The above formula expresses Basis as a nominal value. Basis trading is all about comparing futures contracts with different maturities. When evaluating the cost of crypto futures contracts, calculate the annualised basis, and then compare.