Current location - Trademark Inquiry Complete Network - Futures platform - The narrowing of futures spread
The narrowing of futures spread
Narrowing the spread, bull market spread, positive market, profit.

Basis = Current Price-Future Price

Forward market, current price

Reverse market, current price > futures price, basis > 0

Bull market, near strong and far weak.

Bear market, near weak and far strong.

Buying a hedge will weaken (reduce) the basis.

Sell the hedge, the basis is stronger (bigger)