Apr 11, 2025 · Basis trading is a trading strategy that seeks to profit from perceived mispricing of securities, capitalizing on small basis point changes in value.

Basis trades involve buying a bond in the cash market and selling a futures contract tied to that same bond. The setup creates a spread (the basis) that traders expect to shrink over time. If …

This article teaches you how basis trading works, and how it can be a more strategic, risk-aware way to navigate futures markets.

Basis trading is a financial arbitrage trading strategy that involves the trading of a financial instrument, such as a financial derivative or a commodity, with the motive of profiting from the …

Basis trading is a financial strategy involving offsetting positions in a spot (cash) asset and a related derivative—most commonly a futures contract – aimed to profit from price convergence …

Apr 10, 2025 · Basis Trades for Dummies (Basis Trades Explained for Beginners in Under 60 Characters) I prepared this post after carefully reviewing Federal Reserve documents and …

Nov 19, 2024 · Basis trading is about taking advantage of price gaps between what something costs now (spot price) versus what it’s expected to cost later (futures price). Farmers, …