Registration Strip Icon for discussion Register to chat with like-minded investors on our interactive forums.
Search for a Term:

What is Basis Trading?

Definition of Basis Trading

It is also called cash-carry arbitrage. Simultaneously trading a future and the underlying asset. By taking opposite positions in the cash (long) and futures (short) markets, the investor believes that both securities are mispriced with respect to each other and expects to gain after the mispricing will correct itself.
Do you have a question that has not yet been answered? Let us know.
Tel: +44 (0) 203 8794 460 or Email:

FTSE 100 Index

FTSE 100 Index intraday chart

Gulf Keystone

Gulf Keystone Chart
 GKP Chart  GKP Chat
 GKP Share Price  GKP Level 2
 GKP Info  Free ADVFN account

Top Investment Questions