Basis point: the difference between the spot price and the futures contract price of the same commodity. That is, the gap between the current price and the futures price.

Calculation formula: spot price-futures price = basis point

Due to the cost of holding, the basis point is usually negative. In general, the spot price is actually lower than the nearby futures price. As the delivery deadline approaches, the holding cost decreases, and the difference between spot and futures prices narrows.

In finance, a measure of the change in interest rates of bonds and bills. One basis point is equal to 0.0 1 percentage point, that is, 0.0 1%, so 100 basis points is equal to 1%.

The basis point is defined as "0.00 1(0.0 1%)" or "one percent". It is widely used to calculate interest rates, exchange rates and stock prices, because these fields need to involve the calculation of tiny percentages.

Extended data:

The basic points are divided into:

1, strengthen the foundation.

2. The foundation is weak.

3. National foundation.

4. Premium basis (premium basis)

Reason:

1, the storage cost of goods;

2. insurance;

Step 3 pay interest

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