Basis

Basis

In futures contracts, denotes the gap between the futures price in the market and the cash price. Also refers to the price paid by an investor for a security including any expenses incurred out-of-pocket. Helps determine capital losses or gains for taxation in a sale of stock.

Related posts:

1. Basis Price
2. Basis Risk
3. Factors Affecting Futures
4. Capital Gains Tax
5. Importance of Futures Market