BTC Spread: Coinbase Spot vs CME Futures (skullcap)

BTC Spread: Coinbase Spot vs CME Futures

This indicator plots the real-time spread between Coinbase Spot BTC (COINBASE:BTCUSD) and CME Bitcoin Futures (CME:BTC1!).
It allows traders to monitor the premium or discount between spot and futures markets directly in one chart.

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📊 How it Works
• The script pulls Coinbase spot BTC closing prices and CME front-month BTC futures prices on your selected timeframe.
• The spread is calculated as:

Spread = CME Price – Coinbase Spot Price

🔧 How to Use
1. Add the indicator to your chart (set to any timeframe you prefer).
2. The orange line represents the spread (USD difference).
3. The grey dashed line marks the zero level (parity between CME and Coinbase).
4. Use it to:
• Compare futures vs. spot market structure
• Track premium/discount cycles around funding or expiry
• Identify arbitrage opportunities or market dislocations

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⚠️ Notes
• This indicator is informational only and does not provide trading signals.
• Useful for traders analysing derivatives vs spot price action.
• Works best when paired with order flow, funding rate, and open interest data.