UTEX

P&L cards are now available on UTEX! Take snapshots of your positions and share them with anyone. 📷 You can find the snapshot button: 🔘to the right of each position when you hover over it, 🔘below the order entry panel, 🔘on mobile — next to your current P&L on the ticker page. Try out the new feature: https://go.utex.io/utex-post

5 daily checks in funding arbitrage Funding arbitrage is not passive income. Once a position is open, the work isn't over: you need to check these five things once a day (or before each funding payment). 1️⃣ The funding rate is above your threshold. What to check: the current rate and the forecast for the next payment. Compare them with the exit threshold you set before entering the trade. For example, “If the rate drops below 0.02% per interval, I close the position.” 2️⃣ Both legs have sufficient margin. What to check: the buffer to the liquidation price on each platform. If the buffer is shrinking, it's better to partially close the position or add funds to that account. 3️⃣ The legs on different platforms haven't diverged basis risk. What to check: the price difference. Small fluctuations are acceptable, but a persistent 2–3% divergence is a signal to close both legs. 4️⃣ Upcoming weekends, holidays, and shortened trading days. Trading on UTEX follows the schedule of US stock exchanges. Binance operates 24/7. While UTEX is closed, the position effectively becomes one-legged, and the other leg may open with a gap. Before a long break, decide whether you'll hold the position while the market is closed. The higher the leverage, the riskier it is to hold. 5️⃣ Total P&L. Calculate how much you earned from funding over the past 24 hours, minus overnight costs and fees. If the net result is close to zero or turns negative, the strategy is no longer working. 👉 Check your arbitrage positions or open your first market-neutral trade on UTEX: https://go.utex.io/utex-tele-futures

Bitcoin slows down. Olive Garden revenue growth decelerates ↘️ Darden Restaurants (DRI) -3%. The restaurant operator reported that Olive Garden, the company's largest revenue source and flagship brand, posted comparable sales growth of just 1.1%, missing the 1.3–2% range. Management only reaffirmed its full-year guidance — EPS target range of $11.10–11.35 and total revenue of $13.60–13.75B. ↘️ MGM Resorts (MGM) -10%. One of the world's largest global operators in hospitality, casinos, and entertainment. Billionaire Barry Diller's media conglomerate People withdrew its buyout offer. ↗️ Everpure (P) +4%. The data storage and management platform said it expects revenue growth to accelerate in fiscal 2028. ↘️ Stitch Fix (SFIX) -17%. The fashion company reported better-than-expected earnings but issued weak revenue guidance. 🪙 Bitcoin has slowed its growth. Over the past two days, BTC has been correcting slightly, currently trading around $83,700.

IONQ tests first quantum error decoder. Cracker Barrel's first report under David Deno ↗️ General Mills (GIS) +1%. The food and pet food manufacturer reported EPS and revenue above expectations and reaffirmed its 2027 guidance. ↗️ Cintas (CTAS) +1%. A provider of uniforms and facility services for order and safety in offices and facilities. EPS and revenue beat forecasts. ↗️ Worthington Enterprises (WOR) +18%. An industrial company, manufacturer of products for construction, consumer markets, and sustainable energy. The report confidently beat analyst forecasts across all key metrics, dispelling concerns after disappointing results in the previous quarter. CEO Joe Hayek noted growing demand for ASME engineered tanks used in liquid cooling systems for data centers as a significant growth point going forward. ↗️ IONQ (IONQ) +10%. The company announced the successful testing of its first real-time quantum error decoder. ↗️ Cracker Barrel Old Country Store (CBRL) +6%. A chain of roadside restaurants and retail gift shops. EPS and revenue above expectations. This is the first earnings release under new CEO David Deno, who took the helm in August. ↘️ Paychex (PAYX) -7%. The company provides software and outsourcing services for businesses. EPS slightly above expectations, revenue in line with consensus. Investors were disappointed by the pace of synergies from recent acquisitions, including the Paycor integration, and margin metrics. Despite overall efficiency gains, the market had expected more aggressive returns from technology solutions.

🛍 Costco: $400 billion in market capitalization, hundreds of billions in revenue, and an impeccable reputation Costco is a membership-based wholesale retailer built around one obsessive idea: give customers the lowest possible price. And America seems to love it. The company ranks fifth in the Axios Harris Poll corporate reputation ranking of the 100 largest US companies (Walmart is ranked 83rd). 💡 Costco’s $1.50 hot dog-and-drink combo has been around for more than 40 years. The company has publicly pledged to keep the price unchanged. And in order to continue selling its rotisserie chicken for $4.99, Costco built its own poultry operation. These products have turned out to be some of the company’s best advertising: people come in for a hot dog and leave with a full shopping cart. Costco has virtually no traditional advertising budget. 💼 There is another strict rule: product markups do not exceed 14% (15% for Costco’s own Kirkland brand). Any savings the company achieves in logistics and overhead are used to keep prices low. By comparison, Walmart operates with a 27.5% markup, while BJ’s Wholesale uses 19.1%. 🤝 Then there are the employees. Unusually for retail, Costco has very low staff turnover, with average employee tenure of around nine years. Co-founder and former CEO James Sinegal calculated how much competitors such as Walmart were spending on constantly hiring and training new employees and decided to spend at least half of that amount on decent wages instead. In return, Costco gained experience, productivity, and loyalty. On several occasions, Sinegal said he did not care about Wall Street analysts who criticized him for prioritizing employees and customers over shareholders. His response was simple: if you don’t like it, sell the stock. The result is a rare combination for a public company: happy customers, loyal employees, and enormous revenue. ⭐️ On Thursday after the market closes, Costco will release its earnings report. Add COST to your Favorites or straight to your portfolio on UTEX: https://go.utex.io/hpeawq

GameStop CEO buys more shares. New anti-obesity injections can be given less often than once a week ↗️ Vicor Corporation (VICR) +10%. A manufacturer of modular components and integrated power systems based on a portfolio of patented technologies. The company raised its quarter-over-quarter revenue growth forecast from nearly 10% to more than 20%. Vicor received royalties under a recently announced non-exclusive licensing agreement related to Vertical Power Delivery (VPD) technology. CEO Patrizio Vinciarelli stated that four leading OEMs and hyperscale data center operators have already obtained licenses to use the power system technology developed and patented by Vicor. ↗️ On Holding (ONON) +6%. The Swiss premium sports brand held its 2026 Investor Day at On Labs in Zurich. The company introduced its first-ever share buyback program of up to $1B. For the quarter, net sales are projected to grow approximately 17%. The company also expects a $65M refund of customs duties, which will positively impact gross profit. ↘️ Quest Diagnostics (DGX) -6%. A company in diagnostic testing and related services. The Centers for Medicare & Medicaid Services (CMS) published preliminary rate proposals that could cut lab reimbursements by up to 15% starting January 1, 2027. Truist Securities analysts maintained a "Hold" rating and raised their price target from $250 to $260. But regulatory risk remains high: the cuts could hit routine tests, which form the backbone of Quest's revenue. 🪙 Bitcoin has already gained 12% over the week, currently trading at 86,000. ↗️ Viking Therapeutics (VKTX) +37%. The company published preliminary results from a study of its anti-obesity drug VK2735. Participants who switched from weekly injections to less frequent dosing regimens maintained most of the weight loss achieved over 12 weeks. The gastrointestinal safety profile was comparable to placebo. ↗️ Thor Industries (THO) +3%. The largest manufacturer of motorhomes and travel trailers reported mixed results. Earnings per share fell short of consensus, but revenue exceeded expectations.

“Our fiscal 2026 proved to be more challenging than we anticipated at the outset of the year due to the headwinds impacting the RV industry,” said CEO Bob Martin. “Against this backdrop, our teams executed by delivering net sales of $9.61B for fiscal 2026, exceeding the high end of our guidance — evidence of both our geographic diversity and the sustained appeal of the RV lifestyle".

↗️ GameStop (GME) +4%. CEO Ryan Cohen bought 1,150,680 shares at an average price of $22.9375 for $26.4M.

Bitcoin today 😎 Ride the crypto rally: https://go.utex.io/xsfx42

New hopes for crypto regulation. Zuckerberg may unveil Meta's AI strategy on Wednesday 🔼🔽 Major US indices closed last week mixed. The SPY lost 0.34%, while the Nasdaq gained 0.92%. 🌟 As usual, the technology sector led the gains: CrowdStrike (+14%), Palo Alto Networks (+9%), SanDisk (+9%), Advanced Micro Devices (+8%). Top decliners included Goldman Sachs (-8%), Bank of America (-7%), Netflix (-7%), and IBM (-5%). 🦅 The Fed raised interest rates by 25 basis points, and Kevin Warsh's hawkish remarks at the press conference reflected his stance. According to CME FedWatch, the probability of another hike at the October 28 meeting is now 53%. 🪙 On Tuesday, the CLARITY Act, a crypto regulation bill, failed to secure the 60 votes needed in the Senate to advance to the next stage. Bitcoin initially dropped on the news to nearly $75,000 but then unexpectedly rebounded easily and settled above $80,000. BTC is currently trading at $85,000. 🪙 Coinbase CEO Brian Armstrong stated that the industry can no longer wait for Congress. He urged the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to use their existing tools to create clear rules. Already on Thursday, the SEC approved an "innovation exemption" for blockchain platforms, allowing them to trade tokenized US stocks without registering as exchanges. The next day, the CFTC sent a draft of new rules for crypto transactions and markets to the White House. 🏦 This week, five Fed officials are scheduled to speak, and the market will be looking for hints on whether another hike before year-end is inevitable. 👤 On Wednesday, Mark Zuckerberg will speak at the annual Meta Connect conference, where he may discuss Meta's AI strategy and unveil smart glasses without a camera. 📌 There will be few earnings reports, but notable ones include AutoZone, Cintas, Paychex, General Mills, Costco, Darden Restaurants, TD SYNNEX, Thor Industries, and KB Home. UTEX

Event Calendar for the Week of September 21–27 Monday, September 21 🌙 ABIVAX. 📊 Chicago Fed National Activity Index (CFNAI). Tuesday, September 22 🌞 AutoZone, THOR Industries, MillerKnoll. 🌙 KB Home. 📊 ADP employment data. Wednesday, September 23 🌞 Cracker Barrel, General Mills, Paychex, Cintas. 📊 Manufacturing, Services, and Composite PMI. Thursday, September 24 🌞 BlackBerry, Darden Restaurants, TD SYNNEX. 🌙 Costco. 📊 Initial jobless claims. 📊 New home sales. Friday, September 25 📊 Durable goods orders. 📊 University of Michigan Consumer Sentiment Index. 📊 Consumer inflation expectations. UTEX

Bitcoin above $80,000 Crypto stocks are rallying. Strategy (MSTR) +10% Coinbase (COIN) +8% BitMine (BMNR) +7%

Wells Fargo downgrades Netflix. Mbappé moves from Nike to On Holding ↘️ Xenon Pharmaceuticals (XENE) -22%. The company announced a voluntary pause in patient enrollment in its current Phase 3 clinical trials for major depressive disorder and bipolar depression after analyzing data on nervous system and psychiatric adverse events. ↘️ Nucor (NUE) -2%. The steel company issued a quarterly profit forecast notably below consensus. ↘️ Netflix (NFLX) -3%. Wells Fargo downgraded the streaming giant to "Underperform" and cut its price target from $80 to $57. The bank cited weakening audience engagement. Analyst Steven Cahall noted that Netflix appears to be expanding engagement into games, documentaries, reality shows, and video podcasts, competing with YouTube, but risks missing out on buzzworthy original projects that create value for subscribers. 🪙 Bitcoin has risen and is now trading around $78,000. Crypto stocks are also in the green: Strategy (MSTR) +3% Coinbase (COIN) +2% BitMine (BMNR) +3% ↗️ On Holding (ONON) +5%. The Swiss sneaker brand signed a contract with French star Kylian Mbappé as a global brand ambassador and product development partner, marking the company's official entry into the global football market. This is a direct challenge to the long-standing dominance of Nike and Adidas. Mbappé, the 27-year-old "Real Madrid" forward, terminated his previous sponsorship contract with Nike to help On develop footwear and apparel using its proprietary LightSpray manufacturing technology.

Top trades of the first half of September 📅 ✨ One trader took five of the ten spots and made +$9,500 in profit. But another beat that result with just two trades: +$13,600 from a CoreWeave short and an SK Hynix long. ✨ 8 out of 10 trades were longs, but the biggest profit came from a short position in CRWV → +$7,070. The top traders spent an average of about 5 hours in a position. Almost all trades were closed the same day or the next. ✨ The 3x leveraged semiconductor ETF SOXL earned one trader ~15%, or $1,806, on a position of just $12,000. Meanwhile, a $400,000 position in Tyson Foods returned only 0.29%, but generated roughly the same profit — $1,674. Size matters. ✨ Half the list is AI and semiconductors: CoreWeave, SK Hynix, Broadcom, SOXL, and Marvell Technology. The other five tickers come from retail, food, and finance. There are opportunities everywhere. ✨ Among positions that are still open, Rocket Lab hurts the most. The stock has lost 21% over the past month, leaving UTEX traders with $65,000 in unrealized losses. The most profitable open positions are in Securitize (a real-world asset tokenization company), Michael Saylor’s Strategy, and Ethos (a life insurance platform). Different stocks, timeframes, and position sizes. The key is to find the move and take profits at the right time. 🎯 Trade on UTEX and claim your spot in the top 10: https://go.utex.io/utex-post

Rate hiked, but the market isn't disappointed. Nebius raises prices 🏦 As expected, yesterday the Fed raised rates by 25 basis points — to 3.75%–4%. Fed Chair Kevin Warsh stated that inflation remains too high, and that the regulator is abandoning the practice of giving markets advance signals about future moves. Warsh emphasized that fixating on individual monthly reports (such as inflation or retail sales) is dangerous, and that the Fed will no longer react impulsively to every new batch of "noisy" data. Analysts expect "maximally hawkish policy" from the Fed. Nevertheless, in pre‑market trading the SPY is up 1.15%, and the Nasdaq is up 1.5%. ↗️ Generac Holdings (GNRC) +30%. The energy company announced a major long‑term agreement with Amazon to supply backup power generators for Amazon Web Services (AWS) data centers. The total potential contract value could reach up to $8B. The first shipments, worth $2.4B, are scheduled for 2027 and 2028. ↘️ Fluence Energy (FLNC) -21%. A provider of energy storage solutions and AI‑based software for optimizing renewable energy and power grids. The company sharply cut its full‑year guidance due to ongoing supply chain disruptions affecting battery production in the US. ↘️ Lennar (LEN) -1%. The homebuilder again lowered its delivery volume forecast for the current year, citing pressure from interest rates and worsening conditions in the residential real estate market. ↗️ Nebius (NBIS) +9%. The company disclosed details of the second stage of cloud GPU and CPU price increases: starting October 1, H100 prices will rise 17%, and B300 by 21%. ↗️ Vicor Corporation (VICR) +12%. The company is addressing the "last inch" power delivery problem for AI accelerators consuming over 1,000 watts. It announced the granting of a non‑exclusive license to its Vertical Power Delivery (VPD) technology to a leading AI hardware manufacturer.

$2,000 for an iPhone Duo or Apple stock? For the same amount of money, you can buy a new smartphone or become a co-owner of the company that makes it by buying 6 shares. Apple’s gross margin was around 50% last quarter. And over the full 2025 fiscal year, the company returned more than $100B to shareholders through buybacks and dividends. Share buybacks reduce the number of shares outstanding, increasing the ownership stake of remaining shareholders. With an iPhone, the trajectory is fairly predictable: in a year, it will be worth about a third less, and in two years, about half as much. There’s no such certainty with stocks: they can rise or fall. That uncertainty is the price of having upside potential. 🍏 Apple shares are available for trading on UTEX.

Markets await Fed decision, chipmakers discuss deal, J.B. Hunt warns of lower profit ⚠️ Investors are preparing for the Fed’s interest rate decision today. According to CME FedWatch, the probability of a 25-basis-point rate hike stands at 92.5%. 🪙 Bitcoin is trading around $76,000. Yesterday, the U.S. Senate blocked consideration of the CLARITY Act, but the crypto market avoided a sharp selloff. ↘️ J.B. Hunt Transport Services (JBHT) -10%. The transportation and logistics company unexpectedly warned that third-quarter profit could fall 5–10% compared with the second quarter. J.B. Hunt does not typically comment on results during the quarter. ↗️ Intel (INTC) +3%, SK Hynix (SKHY) +2%. Reuters reported, citing three sources, that SK Hynix is in talks with Intel over a potential deal to manufacture memory chips in the U.S. Two options are under discussion. The first would involve SK Hynix leasing part of Intel’s planned Ohio facility. The second would involve forming a joint venture between the two companies and major cloud service providers. ↘️ Expedia Group (EXPE) -2%. The company operates travel planning and booking services. Morgan Stanley analysts rated the stock Underweight and set a $235 price target, about 20% below Tuesday’s closing price. The bank’s concerns center on user engagement. In the second quarter, growth in Expedia’s monthly active users slowed to 0%, compared with 6% at Booking.com and 10% at Airbnb. Analysts also highlighted Expedia’s heavy reliance on chain hotels and air travel. Offerings in these segments differ little across platforms, making them more vulnerable to the rise of AI tools. Morgan Stanley believes Expedia lags its competitors in differentiating its offering for users. ↗️ Trip.com Group (TCOM) +4%. The Shanghai-based online travel services group reported EPS and revenue above expectations. Chairman James Liang called inbound travel to China a key growth opportunity.

“We intend to support the development of inbound tourism and have set an ambitious goal of serving 200 million international travelers over the next five years,” Liang said.

Crypto stocks under pressure, biotech +15%. Premarket overview ↗️ Waystar Holding (WAY) +12%. The healthcare payments software provider is exploring strategic alternatives, including a potential sale. ↗️ Vera Therapeutics (VERA) +15%. The biotech stock is rising after a successful trial of its drug for patients with primary IgA nephropathy at high risk of disease progression. ↘️ TORM (TRMD) -7%. The company specializes in seaborne transportation of refined oil products, including gasoline, jet fuel, and naphtha. It announced a secondary public offering of 9M shares. TORM itself is not selling any shares and will not receive any proceeds from the offering — the deal represents a large institutional investor exiting its position. ↘️ Dave & Buster's Entertainment (PLAY) -13%. The company operates a chain of restaurants with arcade games and sports viewing across North America. Its earnings report fell short of Wall Street expectations for both EPS and revenue. Entertainment-related revenue fell nearly 9% to $332.6M. 🪙 Bitcoin is trading around $77,000. The Senate is holding a procedural vote on the CLARITY Act today. Democrats have sent Republicans a counterproposal as the two sides have yet to reach an agreement on ethics restrictions for government officials related to crypto assets. The bill’s chances of passing are estimated at 15–25%. ↘️ Against this backdrop, crypto-related stocks are lower: Coinbase (COIN) -4% Strategy (MSTR) -3% BitMine Immersion (BMNR) -4%

AI concerns and the rate decision. What to expect from markets this week 🔽 Major stock indexes ended last week lower: SPY lost 0.77%, while the Nasdaq fell 0.57%. As usual, the tech sector performed best: Dell Technologies +8%, Advanced Micro Devices +8%, SK Hynix and Intel +7% each. The biggest declines came from two major pharmaceutical companies — Novartis (-14%) and Amgen (-13%). 🪙 Bitcoin fell about 1.7% over the week and is now trading around $77,800. 🏦 The main event this week is Wednesday’s Fed meeting, when the interest rate decision will be announced. Recent data showed that the labor market remains relatively resilient: more jobs were added in August than expected, while economists revised June and July employment figures higher. According to CME FedWatch, the probability of a 25-basis-point rate hike has risen to 86.5%, from just 58.6% a week ago. Ahead of the meeting, Trump said that “the United States should have the lowest interest rates in the world.” 👌 On Sunday, OpenAI CEO Sam Altman officially confirmed that the company had abandoned plans for a 2026 IPO. He cited serious concerns about AI safety and uncontrolled development as the main reason. Earlier, Altman told Fortune that even a 10% chance of AI causing human extinction by the end of the decade was completely unacceptable. ⚡ OpenAI’s decision coincided with a major essay by Anthropic CEO Dario Amodei, who warned about the risks of recursive self-improvement in AI models. Industry leaders, including Elon Musk (xAI) and Demis Hassabis (Google DeepMind), unexpectedly agreed that the AI race needs to slow down to allow more time to develop effective control mechanisms. 💬 Some investors are already concerned that statements from Altman and Amodei could have a significant impact on stocks of companies with exposure to AI. 📅 The earnings calendar is extremely light this week. Among major companies, the only notable name is Lennar, the third-largest U.S. homebuilder by market capitalization.

Event Calendar for the Week of September 14–20 Monday, September 14 🌞 RF Industries, Hain Celestial. 🌙 Dave & Buster’s, MindWalk, Kestra Medical Technologies. 💲 Last day to buy for dividends: Coca-Cola, Altria, Gilead Sciences, Devon Energy, Macy’s, T. Rowe Price. Tuesday, September 15 🌞 Forgent Power Solutions, Vera Bradley, Bioceres Crop Solutions. 🌙 Trip.com Group, Evolution Petroleum. 📊 Empire State Manufacturing Index. 📊 API crude oil inventories. 💲 Last day to buy for dividends: TSMC, NXP Semiconductors, Prologis, Intercontinental Exchange, AIG, Motorola Solutions, Permian Resources. Wednesday, September 16 🌞 LuxExperience, iSpire. 🌙 Lennar. 📊 August retail sales. 📊 August import and export price indexes. 📊 EIA crude oil inventories. 🏦 Fed press conference on interest rates. 💲 Last day to buy for dividends: Salesforce, Royal Caribbean, Best Buy, VICI Properties. Thursday, September 17 🌞 Innate Pharma. 📊 Initial jobless claims. 📊 August housing starts and building permits. 📊 Philadelphia Fed Manufacturing Index. 📊 Pending home sales. 📊 EIA natural gas inventories. 💲 Last day to buy for dividends: Restaurant Brands International, Omnicom, International Flavors & Fragrances, EnerSys, Frontline, Sibanye Stillwater. Friday, September 18 📊 August industrial production. 💲 Last day to buy for dividends: Broadcom, Vistra, DTE Energy, Main Street Capital.

Copart acquires a competitor, RH expands its audience. Premarket overview ↘️ Zumiez (ZUMZ) -15%. The action sports retailer reported a loss per share of $0.17 on revenue of $209M, both below expectations. Investor sentiment deteriorated sharply after the company issued weak third-quarter guidance. It expects revenue of $222–226M and EPS of $0.00–0.10, compared with Wall Street consensus of $0.59. The cautious outlook reflects sluggish demand for apparel during the back-to-school season. ↘️ Adobe (ADBE) -4%. Revenue and EPS came in only slightly above expectations. Fourth-quarter revenue guidance was slightly below consensus. ↗️ Oracle (ORCL) +6%. The database and cloud infrastructure giant reported EPS of $1.92, beating the consensus estimate of $1.73. Total revenue came in at $19.3B, including $11.6B from cloud services. Oracle also raised its EPS and revenue guidance for 2027. ↗️ Copart (CPRT) +4%. A major U.S. operator of a global online vehicle auction platform. EPS missed expectations, but Copart agreed to acquire ACV Auctions (ACVA), a marketplace for wholesale used vehicle sales. The deal is valued at about $1.9B, or $10.50 per share — a 45% premium to ACVA’s August 10 closing price. ↗️ RH (RH) +7%. The company specializes in luxury home furnishings. Second-quarter profit increased, and the full-year outlook was raised. CEO Gary Friedman highlighted strong initial demand for the new RH Estates collection. He noted that interest is coming “almost exclusively” from new customers, suggesting that the collection is genuinely expanding the company’s target market rather than cannibalizing sales of existing products. ↗️ Frequency Electronics (FEIM) +29%. A manufacturer of high-precision timing and frequency control systems. EPS and revenue significantly exceeded expectations. Funded backlog rose to a record $129M, up 82% year over year and 16% from the previous quarter. The book-to-bill ratio reached 1.76:1, signaling sustained demand from US satellite, government, and defense programs. Management expects annual revenue to reach or exceed $150M by fiscal 2029. One customer under a secure military communications contract has requested a more than 50% increase in monthly production volume. 🇺🇸 CPI inflation for August 🔘m/m: +0.4% (expected +0.4%, prior +0.1%) 🔘y/y: +3.4% (expected +3.4%, prior +3.4%) Core CPI: +2.4% y/y (expected +2.4%, prior +2.5%).

Basis risk in funding arbitrage: when the hedge stops working In an ideal scenario, the asset’s price moves in sync across both platforms. The long and short offset each other, and you collect the funding. The thing is, stocks and commodities on, for example, UTEX and Binance are not exactly the same instruments. They are two different representations of the same underlying asset. In a calm market, they move closely together, but sometimes the market mechanics break down. The basis is the price difference between the two platforms. This can happen because of: 🔘Different exchange trading hours. 🔘Technical issues. 🔘Liquidity problems. 🔘Delistings and market stress. 🔘Overheated perpetual futures markets. Example Unfavorable news cause Nokia to fall 5% on Binance but only 2% on UTEX. That 3% gap is an unexpected loss the hedge did not cover. On a $5,000 position, that is $150 out of nowhere. For comparison, the total funding on NOK over two strong days was around $70. Basis risk is dangerous because it is almost impossible to control — you cannot force two platforms to trade at the same price. What you can do ✔️ Allow for a small basis-risk buffer of 1–3% of your capital as a possible deviation. ✔️ Choose liquid instruments. Thin, illiquid tickers tend to diverge more often and by a wider margin. ✔️ Watch the price gap between platforms. If it starts widening and does not come back, that is a signal to exit. Basis risk is one of the four risks in funding arbitrage that we cover in our detailed guide for beginners. You can get it through support if you have at least $500 in your account.