thommo77

No, has not relationship to the spot. So let’s say the you sell the S&P futures to hedge a long equity position. Now let’s say that something happens and the basis dramatically widens because the futures stopped tracking the underlying - your are SOL and your profit or loss is based on those futures no matter what happens to the spot.
The only way that you are affected by the spot is that the futures and the spot trade on a relative basis but if that relationship snaps then you are no longer hedged. Make sense?