Basis Basis theory holds that the futures price is the market's forecast value of the future spot market price, and there is a close relationship between them. Due to the similarity of influencing factors, futures prices and spot prices often show a relationship of ups and downs. But the influencing factors are not exactly the same, so the changes of the two are not exactly the same. The relationship among spot price, spot price and futures price can be described by basis. Basis is the difference between the spot price of a commodity in a specific place and the futures contract price of a specific futures contract of the same commodity, that is, basis = spot price Spot price-futures price. The basis is sometimes positive (called the inverse market) and sometimes negative (called the positive market). Therefore, the basis is a dynamic indicator of the actual operation change between the futures price and the spot price. The change of basis directly affects the effect of hedging. It is not difficult to see from the principle of hedging. Hedging actually replaces the risk of price fluctuation in the spot market with the risk of basis, so theoretically, if the basis does not change between the beginning and end of hedging, it is possible to achieve complete hedging. Therefore, the hedger should pay close attention to the change of basis and choose favorable opportunity to complete the transaction. Cardinality is divided into negative and positive numbers. And three market conditions of zero: 1 basis is negative normally: under the normal supply and demand of commodities, basis should generally be negative, that is, the futures price should be greater than the spot price of commodities. 2. The reversal of the market situation has a positive foundation: when the supply and demand of commodities in the market are short, the spot price is higher than the futures price. 3 base is zero. When the futures contract is closer to the delivery date, the basis is closer to zero. Change of basis beneficial to hedgers: 1 Futures price rises, spot price remains unchanged, and basis weakens. After the hedging transaction is completed, additional profits can be obtained while maintaining the value. Spot price Spot price fell and the basis weakened. When the hedging transaction ends, additional profits can be obtained at the same time. 3. Futures prices rise, spot prices fall, and the basis is extremely weak. When the hedging transaction ends, additional profits can be obtained in both markets at the same time. 4. Both the futures price and the spot price rose, but the futures price rose more than the spot price. The basis becomes weak, and by ending the hedging transaction, you can gain additional profits while maintaining the value. 5. Both the spot price and the spot price fell, but the spot price fell more than the futures price, and the basis weakened. By ending the hedging transaction, you can gain additional profits while maintaining the value. 6. The spot price falls below the futures price, and the basis becomes weak. Ending the hedging transaction can gain additional profits while maintaining the value. The basis change that is conducive to selling hedging: the futures price 1 falls, the spot price remains unchanged, and the basis becomes stronger. Ending hedging can gain additional profits while maintaining the value. Futures prices remain unchanged, spot prices rise and basis becomes stronger. After hedging, additional profits can be obtained at the same time. Let me perfect the answer. You can get three wealth values after passing the examination. The latest answer: 20 10-05- 19 07:32 version: 1 version history.