buying the basis

buying the basis definition - finance
Buying an investment in the cash markets, such as wheat or S&P 500 futures, and then selling a futures position in an attempt to profit from a narrowing of the basis. Also called cash-and carry trade.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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