The ratio of the value of long or short futures contracts to the value of the cash commodity being hedged....

The basis can develop a narrowing trend when the futures price of an asset/ commodity increases faster than the sport...

The basis can develop a widening trend when the spot price of an asset/ commodity increases faster than the futures...

The swap spread which results from two floating rate indexes (e.g., LIBOR ) in different currencies. This occurs when a...

An interest rate swap whereby two floating rate payments in the same or different currencies are exchanged. A premium or...

A part of the fair value of an option; an option value that includes, in addition to the intrinsic value,...

It stands for basis point value; a tool that is used to measure interest rate risk, especially that associated with...

A tool that is used to measure interest rate risk, especially that associated with swap trading books (swap book), bond...

The difference between the market spreads and the model spreads (theoretical spreads calculated using a model). For example, the theoretical...

The difference between the CDS spread and par equivalent CDS spread: PECS basis = CDS spread - PECS It captures...