Transactions which are made with respect to portfolio holdings or a basket of assets where the position price or cost are determined against the price or cost of an exchange-traded derivative such as a futures contract. Basis trade also refers to an arbitrage-linked trade where profit is made by exploiting changes in the price differences between derivatives and their underlying assets. In this sense, it implies the simultaneous trading of cash bonds and bond futures such that an investor can benefit from expected or possible changes in the basis. Basis trades can be performed as spreads in the EFP market, or by taking separate cash and futures positions.