basis
The difference between the current cash price and the futures price of the same commodity. Unless otherwise specified, the price of the nearby futures contract month is generally used to calculate the basis. Chicago Board of Trade glossary
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The difference between the cash price and the futures price of a commodity. CASH - FUTURES = BASIS. Basis also is used to refer to the difference between prices at different markets or between different commodity grades. The CENTER ONLINE Futures Glossary
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(1) The difference between rates or prices of assets that are related but not identical. For example, the difference between the cash price and the futures price of a security.
(2) The difference between the price of a futures contract and the price of the underlying.
(3) The number of days in a bond coupon period.
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The price an investor pays for a security plus any out-of-pocket expenses. It is used to determine capital gains or losses for tax purposes when the stock is sold. Also, for a futures contract, the difference between the cash price and the futures price observed in the market. Bloomberg Financial Dictionary
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The difference between the spot or cash price and the futures price of the same or a related commodity. Basis is usually computed to the near future, and may represent different time periods, product forms, qualities and locations. The local cash market price minus the price of the nearby futures contract. Chicago Mercantile Exchange Glossary
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The difference between the price of a futures contract and that of the underlying asset. Calculated by subtracting the futures price from the cash price. Dresdner Kleinwort Wasserstein financial glossary
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The difference between the cash price and futures price. Exchange Handbook Glossary
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The difference between the underlying product price and the futures price. LIFFE
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basis ba‧sis [ˈbeɪss] noun bases PLURALFORM [-siːz] [countable]
1. the facts or ideas from which something can be developed:
basis for
• If talks restart, this package is likely to be a basis for negotiation.
2. the original figures from which something can be calculated or valued:
basis for/of
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The difference between a futures prices and the corresponding underlying cash price. Basis is normally quoted as cash price deducted from futures price of the nearest delivery month. There is a high degree of correlation between cash and futures prices but the basis is not constant. A basis trade exploits the expected movements in basis. Basis is likely to reduce and eventually to shrink to nothing as the futures contract approaches its expiry date. (Figure 2.)
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basis UK US /ˈbeɪsɪs/ noun (plural bases /ˈbeɪsiːz/)
► [
C, usually singular]
basis for sth »
Should the TV licence fee continue to be the basis for the BBC's funding?
»
Ministers claimed the figures were bogus and had no basis in reality.
be/form/provide the basis for sth »
Sustainable development should form the basis for a corporate vision of the future.
as a basis for sth »
It is hoped that the WTO agreements will serve as a basis for strengthening relationships with developing countries.
► [
S]
on a daily/monthly/regular, etc. basis »
Skills need to be updated on an ongoing basis.
on a full-time/permanent/temporary, etc. basis »
She's employed by the agency on a temporary basis.
»
Assessment of insurance claims takes place on a case-by-case basis.
► [
S or
U] »
There appears to be no logical basis for these proposals.
on the basis of sth »
Discrimination on the basis of gender, age, race, or sexual orientation is against the law.
on the basis that »
Some bidders were rejected on the basis that they lacked an understanding of the needs of the organization.
Financial and business terms.
2012.