Exchange Currency

short the basis

Strategy used in futures trading, where a futures position is purchased in order to hedge against the delivery of the commodity. The benefit of this method is that it locks in the price, so an increase in the commodities price will not affect the trader. opposite of long the basis.

Related information about short the basis:
  1. Short The Basis Definition | Investopedia
    A futures strategy involving the purchase of a futures position to hedge against a future commitment to deliver the underlying commodity.
     
  2. Short the Basis - Commodities Glossary - IndexMundi
    Short the Basis. A hedger is said to be short the basis when he/she has a short cash position hedged with a long futures position. Long hedgers want to protect ...
     
  3. Short the Basis - Financial Dictionary - The Free Dictionary
    In futures, to take a short position on a commodity and a long position on a futures contract on the same commodity. This allows the investor to lock in the price of ...
     
  4. What is short the basis? definition and meaning
    Definition of short the basis: Strategy used in futures trading, where a futures position is purchased in order to hedge against the delivery of the commodity.
     
  5. Agricultural Marketing - Basis Terms
    Sep 17, 2010 ... BASIS RISK: The potential loss in value that you may incur if the basis widens, (if you are long the basis) or narrows (if you are short the basis).
     
  6. Basis Trading Section 3 - James Goulding.com
    To sell or go short the basis is just the opposite: selling or short- ing the cash bond and buying a number of futures equal to the bond's conversion factor for every ...
     
  7. The Fundamentals of Basis Trading - YieldCurve.com
    A good way of assessing a position of being short the basis is to assume one is short of an out-of-the-money option. The maximum profit is the option premium ...
     
  8. Futures Arbitrage by FuturesTradingpedia.com
    Short the Basis isn't only a futures arbitrage technique when held all the way to ... Being short the basis means being short the price difference between the spot ...