Examples are as follows:
An importer signed a corn import contract with foreign investors in the form of basis, the price was 65438+February futures price plus 15 cents (+15centsoverDec), and the delivery date was 165438+ 10. 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.
As can be seen from the above example, importers not only make up for the losses in the spot market with the profits in the futures market when prices fall, but also earn a profit of 2 cents per bushel through basis pricing and hedging.