Basis & Arbitrage
Spot liquidity for markets that trade primarily in derivatives.
Use cases
Hold the spot leg of a basis trade
Funds and prop firms
Who this is for
Funds and prop firms trading spot against futures or perpetuals.
The problem today
Most trading in tokenized commodities and securities occurs on the derivative side. Without a deep spot market, funding rates drift from fair value and the carry becomes unreliable. The spot leg also typically sits at an exchange, adding venue risk to an otherwise clean trade.
How it works on Temple
- Hold spot on Temple in your own custody.
- Short the derivative where it is listed.
- Capture the spread without venue exposure on the spot leg.
What you need to get started
A Temple account and access to the derivatives venue.
Arbitrage across venues
Active traders
Who this is for
Active traders.
The problem today
The same asset prices differently across venues. Capturing the difference carries settlement risk on each leg, and the delay between legs often consumes the spread.
How it works on Temple
- Execute the Temple leg with atomic settlement.
- No settlement wait on that side.
- The spread is preserved.
What you need to get started
A Temple account and access to the other venue.
Triangular arbitrage on a single book
Active traders
Who this is for
Active traders.
The problem today
Triangular arbitrage normally requires 3 venues and 3 settlement cycles, which is where the edge is lost.
How it works on Temple
- Trade the pairs on a single book.
- Each leg settles atomically.
- Early markets carry wider inefficiencies.
What you need to get started
A Temple account.