Premium

What is "Premium"?

Premium is the relative spread between the futures price and the index price.

Why is it important?

• It shows how far futures pricing deviates from the reference price.
• It helps identify periods of persistent directional pressure.
• It adds context for regime analysis together with Basis.

How is it calculated?

• Premium measures the relative difference between the futures price and the index price.
• Positive values indicate futures pricing above the index, while negative values indicate pricing below the index.
• The normalization convention is defined by the exchange methodology.