HONGKONGDIR

HOMECompaniesDictionaryFAQs

Home » Dictionary » Futures » short the basis

Short The Basis

Definition
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.

Nearby Terms
Similar companies
Copyright © 2013 hongkongdir.com All Rights Reserved.
Provides public information about companies in the Hong Kong.