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DERIVATIVES · CARRY

Annualized Futures Premium: Calculate Carry After Fees and Funding

A dated future trading above spot offers a premium you can annualise. What you keep depends on fees, funding on any hedge and the margin you tie up.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

Annualised futures premium = (futures price ÷ spot price − 1) × (365 ÷ days to expiry). For a basis (cash-and-carry) trade, buying spot and selling the future, subtract trading fees on both legs, any funding if a perpetual is used instead of spot or as a hedge, and consider the return on margin you must post. Binance's basis endpoint reports basis and basis rate for contract types. A 6% annualised premium can shrink to 4% or less after costs.

Formula and example

Illustrative: spot $60,000; quarterly future $61,200; 90 days to expiry. Premium = 61,200/60,000 − 1 = 2.0%. Annualised = 2.0% × 365/90 = 8.1%.

ItemAnnualised impact
Gross premium+8.1%
Fees: 4 trades × 0.05%−0.8%
Margin drag (capital not earning)−0.5%
Net carry≈ +6.8%
Illustrative carry waterfall (% annualised)Illustrative carry waterfall (% annualised): Gross 8.1 %; After fees 7.3 %; After margin drag 6.8 %.ILLUSTRATIVE CARRY WATERFALL (% ANNUALISED)Gross8.1 %After fees7.3 %After margin drag6.8 %
Costs matter more for short-dated trades. Original ChartsPod editorial graphic.

Using perpetuals

With a perpetual instead of a dated future, there is no fixed premium; you receive or pay funding each settlement. Funding varies, so carry is uncertain. Convert funding to annualised terms with the correct interval (see Crypto Funding Rates: Compare One-Hour and Eight-Hour Payments).

Risks

Carry trade risksCarry trade risks: Exchange and custody risk on both legs; Margin calls on the short future in rallies; Funding turning negative (perp version); Early exit at worse basis; Fees and slippage on entry and exit.CARRY TRADE RISKSExchange and custody risk on both legsMargin calls on the short future in ralliesFunding turning negative (perp version)Early exit at worse basisFees and slippage on entry and exit
Carry is not risk-free. Original ChartsPod editorial graphic.

Exiting before expiry

Many carry trades close before expiry. The exit basis may be wider or narrower than the entry basis, changing the realised return. If the basis compresses quickly, the trade earns more than the annualised figure suggested; if it widens during a rally, the short future can show losses until expiry. Plan the exit rule in advance and include exit fees.

Conclusion

Annualise the premium, subtract fees, funding and margin costs, and weigh exchange risk before calling a basis trade attractive.

Related: Funding Costs in Perpetual Backtests: Use Settlement Timestamps.

Compare spot and perpetual prices and funding on one venue.

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Questions readers ask

How do I annualise a futures premium?

(Futures ÷ spot − 1) × 365 ÷ days to expiry.

Is cash-and-carry risk-free?

No: exchange, margin, funding and execution risks remain.

Where can I get basis data?

Binance's API includes a basis endpoint; check your venue.

Sources and methodology

Derivatives definitions come from Binance's USD-M market data documentation, Hyperliquid's funding documentation, Bybit's liquidation rules and Deribit Insights, as read on 17 October 2026. ChartsPod features were checked on its public pages. Examples use illustrative numbers.

  1. Binance: USD-M market data (long/short ratios, OI statistics, klines) — ratio definitions, 30-day retention, kline open/close time.
  2. Hyperliquid docs: Funding — hourly payments, 1/8 of the 8-hour rate, oracle price for notional.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.