Fair Value Tracker: Read Basis Without Calling It Profit
A practical Fair Value Tracker lesson for reading basis as the gap between observed local price and model value, separating global basis, import basis, gross basis, net basis, and percent scale.
Lesson promise
Frame the question
Am I reading global basis or import basis?
Check the evidence
Use 5 guided chapters to read freshness, confidence, and caveats in order.
Move into the tool
Open Open Fair Value Tracker with a checklist instead of a blank screen.
Educational workflow only. No trade recommendations, personalized advice, leverage guidance, or guaranteed outcomes.
Chapter 01
Choose the model before reading the gap
Trader question
Am I reading global basis or import basis?
Basis is observed local value minus a chosen model value. Global basis compares against fair global before landed costs, while import basis compares against fair import after the selected cost profile.
Desk checklist
- Name the observed local value.
- Name the model value.
- Say whether the comparison is global or import basis.
Interactive proof
Overview metrics, global basis, import basis, and model labels
Switch between global basis and import basis in the ledger and name which question changed.
If costs matter, quote the basis field that keeps costs attached. Then add freshness, contract, liquidity, and event caveats before the read leaves the desk.
Interactive desk lab
Basis Ledger Without Profit Labels
A practical Fair Value Tracker ledger for separating global basis, import basis, gross gap, cost drag, net basis, and basis percent without turning the gap into a profit claim.
A practical Fair Value Tracker ledger for separating global basis, import basis, gross gap, cost drag, net basis, and basis percent without turning the gap into a profit claim.
Two basis fields, two questions
Global basis and import basis appear side by side so the learner sees which model value each gap is measured against.
Observed local price appears at the top.
Fair global lands as the first comparison rail.
Fair import lands as the second comparison rail.
The lesson asks which question the trader is answering.
Lesson notes
The full chapter walkthrough in reading form — use it to review the lesson or skim ahead before working through the interactive steps above.
Chapter 01
Choose the model before reading the gap
Am I reading global basis or import basis?
Basis is observed local value minus a chosen model value. Global basis compares against fair global before landed costs, while import basis compares against fair import after the selected cost profile.
Overview metrics, global basis, import basis, and model labels
- Name the observed local value.
- Name the model value.
- Say whether the comparison is global or import basis.
Chapter 02
Separate gross gap from net basis
Which part of the gap survives costs?
A gross gap can look meaningful before costs. Net basis is the remaining model deviation after the selected cost profile, and it can shrink, flip, or become too assumption-sensitive to quote.
Basis net global, basis net import, cost drag, and spread detail list
- Read gross gap as before-cost context.
- Read cost drag separately.
- Quote net basis when costs matter.
Chapter 03
Use basis percent for scale
How large is the gap relative to the model value?
Basis percent divides the gap by the selected model value. It helps compare context across price levels, but it still needs freshness, contract, and cost-profile caveats.
Basis percent fields and current spread metric
- Keep the local currency basis visible.
- Use percent as scale context.
- Avoid treating percent as a trade trigger.
Chapter 04
Treat positive or negative basis as deviation
What does above or below model actually prove?
Positive basis and negative basis describe where observed local price sits versus the selected model. They do not prove convergence, trade permission, or captured profit.
Spread Monitor, current spread, basis chart, and explanation panel
- Say above model or below model.
- Call the read a model deviation.
- Add what would invalidate or downgrade the read.
Chapter 05
Quote the field that carries costs
Which basis field would I quote if costs matter?
If costs matter, the safer note quotes a cost-aware basis field and names the active cost profile. A naked basis number strips away the assumptions that make the read reviewable.
Basis net import, basis percent, cost profile, and explanation text
- Choose basis net import when the landed-cost profile matters.
- Attach the cost-profile label.
- Attach source freshness and contract caveats.
Sources used for this tutorial
Next step
Open the tool with the checklist beside you.
Move from the lesson into the matching Bullion Brains tool, keep the checklist visible, and treat the output as evidence until the caveats are clear.