FT MarketWatch

Strong basis

A relatively small difference between Cash prices and Futures prices. An investor who wants to protect against rising prices would prefer that the Basis weaken, thus increasing his/her unrealized gain. An investor who wants to protect against falling prices will prefer that the Basis strengthen, thus minimizing Unrealized loss.

Related Terms: 9 Basis, Cash, Cash price, Futures, Futures price, ISIN, Inc., Real, Unrealized loss
Other Related Pages: Category: Futures Starting With: S
Additional Related Terms: 10-K, Accrual basis accounting, Adjusted basis, After-tax basis, Asked price, Asking price, At par, All or any part, At best, At call