Basis trading is a pricing and hedging strategy often adopted by importers. It refers to a hedging strategy that fixes the spot transaction price through the market price of imported commercial futures, thus transferring the risk of resale price fluctuation.

Examples are as follows:

An importer signed a corn import contract with foreign investors in the form of base price.

Basis trading

Similarly, the futures price of 65438+February plus 15 cents (+15centsoverDec) and the futures price of11.02 should be selected by the importer before1.02. The importer's futures price of 65438+February on September 28th is more suitable, so the exporter is informed to choose the futures price of 2.36 USD/bushel on September 28th. In addition, in order to transfer the risk of price fluctuation, a short trading position is established in the futures market. 165438+12, the importer found the final buyer in China and reached a resale contract. The spot price fell to $2.45/bushel, and the futures price also fell to $2.28/bushel. When the importer reached a resale contract, he closed his position with a long position in the futures market. So spot selling basis-spot buying basis = 17- 15 = 2 cents.