Definitions

Basis

Posted By: TradersLog

The difference between the spot or cash price of a commodity and the price of the nearest futures contract for the same or a related commodity. Basis is usually computed in relation to the futures contract next to expire and may reflect different time periods, product forms, grades, or locations. Broadly, the difference between cash prices and the futures contract prices.

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Categories Definitions, Trading Industry Definitions | Tags: Futures Definitions

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