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.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
short-term objectives short-change