CSIMarket


Terms Beginning with B
                       
                       
 Backlog   Basis Point   Billed Business Credit Card  
 Balance of payments   Basis-Only Swap   Bioavailability  
 Balance on current account   Bauxite   Biologic Products  
 Balance on goods and services   Bayer Process   Biomarker  
 Balance Sheet   Bbl   Blast Hole Open Stoping  
 Balloon Angioplasty   Bcf   Blasting  
 Barrel   Bcfe   Blendstocks  
 Basic Cards-In-Force   Beneficial Interest   Blister Copper  
 Basic Net EPS   Beneficiation   Block Cave  
 Basis   Beta   BOE  
                 
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Basis

Financial Term


Basis refers to the difference between the spot price of a commodity or an asset and its futures contract price. In simpler terms, Basis measures the difference between the price of the actual underlying asset (such as a stock or commodity) and the price agreed upon in a futures contract to buy or sell that asset at a future date.

In the financial industry, Basis is commonly used in the trading of futures contracts. Traders use Basis to estimate the future price of an asset and to determine whether the futures contract is overvalued or undervalued. When the Basis is positive, it means that the spot price is higher than the futures price, indicating that the market expects the price of the asset to rise in the future. Conversely, when the Basis is negative, it means that the spot price is lower than the futures price, indicating that the market expects the price of the asset to fall in the future.

Investors and traders can use Basis to make informed trading decisions. For instance, if they believe that the Basis is too high, they can purchase futures contracts in anticipation of a price increase. Conversely, if they believe that the Basis is too low, they can sell futures contracts in anticipation of a price decrease. By closely monitoring the Basis, investors can get a better understanding of market sentiment and volatility, which can help them to make more informed investments in the future.


   
     

Basis

Financial Term


Basis refers to the difference between the spot price of a commodity or an asset and its futures contract price. In simpler terms, Basis measures the difference between the price of the actual underlying asset (such as a stock or commodity) and the price agreed upon in a futures contract to buy or sell that asset at a future date.

In the financial industry, Basis is commonly used in the trading of futures contracts. Traders use Basis to estimate the future price of an asset and to determine whether the futures contract is overvalued or undervalued. When the Basis is positive, it means that the spot price is higher than the futures price, indicating that the market expects the price of the asset to rise in the future. Conversely, when the Basis is negative, it means that the spot price is lower than the futures price, indicating that the market expects the price of the asset to fall in the future.

Investors and traders can use Basis to make informed trading decisions. For instance, if they believe that the Basis is too high, they can purchase futures contracts in anticipation of a price increase. Conversely, if they believe that the Basis is too low, they can sell futures contracts in anticipation of a price decrease. By closely monitoring the Basis, investors can get a better understanding of market sentiment and volatility, which can help them to make more informed investments in the future.


Related Financial Terms


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