TRADING GLOSSARY
Basis
Basis is the difference between a commodity's spot price and the price of a specified futures contract. It is commonly calculated as spot minus futures, although conventions vary; location, quality and delivery timing can all affect the comparison.
EXAMPLE
Using spot minus futures, a hypothetical spot price of $100 and futures price of $103 produce a basis of minus $3 per unit.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure