buying basis

Definition

The difference between the cost of a cash commodity and the futures contract sold to hedge against it.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com

Popular 'Futures' Terms

security
commodity
derivative
risk
securities

intrinsic value
purchase
futures
outstanding
forward contract

buying basis in the news

Enter your email address to get our free Term of the Day newsletter!

Tools

email
print
cite
link
translate
share

buying basis is ...

... part of the Futures subject.

Nearby Terms

buy to cover
buyback
buydown
buyer's market
buyer's monopoly
buying basis
buying climax
buying hedge
buying on margin
buying outright
buying power