Trading situation in which a cash long position is hedged by a futures or forward short position. The trader who is long the basis in a commodity is trying to be protected against the possible increase in its price.
Related information about long the basis:
- Long The Basis Definition | Investopedia
An individual or company that owns or has purchased a commodity such as oil, gold or lumber and then hedges its position by selling futures contracts on the ...
- What is long the basis? definition and meaning
Definition of long the basis: Trading situation in which a cash long position is hedged ... The trader who is long the basis in a commodity is trying to be protected ...
- What Does "Long the Basis" Mean?
To long the basis means to employ a type of investment strategy in which a short hedge position is combined with a long cash position in the marketplace. This is ...
- Long the Basis Definition - Traders Log
A person or firm that has bought the spot commodity and hedged with a sale of futures is said to be long the basis.
- long the basis - Invest Definition
long the basis definition: Purchasing futures contracts to protect against possible rising prices of commodities. Traders will “go long the basis.” It is the opposite of ...
- Long the Basis - Commodities Glossary - IndexMundi
Long the Basis. Being long the basis means to have a long actuals position (you own the commodity or you will own it in the future), hedged with a short futures ...
- Basis Trading Section 3 - James Goulding.com
By definition, “buying the basis,” or “going long the basis” is buying cash bonds and selling a number of futures equal to the bond's conversion factor for every ...
- Agricultural Marketing - Basis Terms
Sep 17, 2010 ... BASIS RISK: The potential loss in value that you may incur if the basis widens, (if you are long the basis) or narrows (if you are short the basis).