Dual FUT/Spot price with next monthly expiry

This Pine Script dashboard indicator is specifically designed for pair trading strategies in Indian futures markets (NSE). Let me break down how it facilitates pair trading:
Core Pair Trading Concept
The script monitors two correlated stocks simultaneously (Symbol A and Symbol B), comparing their:

Spot prices vs Futures prices
Current month futures vs Next month futures
Premium/discount relationships

Key Pair Trading Features
1. Dual Symbol Monitoring
symbolA = "NSE:TCS" (Default)
symbolB = "NSE:INFY" (Default)
Allows traders to watch two stocks in the same sector (like TCS and Infosys in IT) to identify relative value opportunities.

2. Basis Analysis for Each Stock
The indicator calculates the basis (difference between futures and spot):
Price Difference: FUT - SPOT
Premium/Discount %: ((FUT - SPOT) / SPOT) × 100

This helps identify when one stock's futures are relatively more expensive than the other's.

3. Multi-Expiry View
Near Month Futures (1!): Current active contract
Next Month Futures (2!): Upcoming contract

This enables calendar spread analysis within each stock and helps anticipate rollover effects.

4. Comparative Table
The detailed table displays side-by-side:
Symbol Spot Price Near Future Near Diff (%)Next Monthly Next Diff (%)Lot SizeTCS₹3,500₹3,520+20 (+0.57%)₹3,535+35 (+1.00%)125INFY₹1,450₹1,455+5 (+0.34%)₹1,460+10 (+0.69%)600

5. Lot Size Integration
Critical for position sizing in pair trades - the indicator fetches actual contract lot sizes, enabling proper hedge ratio calculations.
Pair Trading Strategies Enabled
Strategy 1: Basis Divergence Trading

When TCS futures trade at +0.8% premium and INFY at +0.2%
Trade: Short TCS futures, Long INFY futures (betting on convergence)
The indicator highlights these differences with color-coded cells

Strategy 2: Calendar Spread Arbitrage

Compare near month vs next month premium for each stock
If TCS shows wider calendar spread than INFY, potential arbitrage exists
Trade the relative calendar spread difference

Strategy 3: Premium/Discount Reversal

Monitor which stock moves from premium to discount (or vice versa)
Color indicators (green/red) make this immediately visible
Enter pairs when relative premium relationships normalize

Strategy 4: Lot-Adjusted Pair Trading

Use lot size data to create market-neutral positions
Example: If TCS lot = 125 and INFY lot = 600
Ratio = 600/125 = 4.8:1 for rupee-neutral positioning

Visual Trading Cues

Green cells: Futures at premium (contango)
Red cells: Futures at discount (backwardation)
Purple values: Next month contracts
Yellow highlights: Spot prices

Practical Pair Trading Example
Scenario: Both stocks in same sector, historically correlated

Normal state: Both show +0.5% premium
Divergence: TCS jumps to +1.2%, INFY stays at +0.5%
Trade Signal:

Short TCS futures (expensive)
Long INFY futures (relatively cheap)


Exit: When premiums converge back to similar levels
Hedge ratio: Use lot sizes to maintain proper exposure balance

Advantages for Pair Traders
✓ Single-screen monitoring of both legs
✓ Real-time basis calculations eliminate manual math
✓ Multi-timeframe view (near + next month)
✓ Automatic lot size fetching for position sizing
✓ Visual alerts through color coding
✓ Percentage normalization for easy comparison
This indicator essentially transforms raw price data into actionable pair trading intelligence by highlighting relative value discrepancies between correlated assets in the futures market.

Enjoy!!