Basis

Summary of Basis

As used in commodities trading, either: 1) the difference between the spot price and the futures price, or 2) the difference between the cash market price at a given geographic point and the cash market price at a current delivery point, i.e., a point where there is active trading in the tangible commodity.

(Main Author: William J. Miller)

Basis

Resources

See Also

• Accrual basis