basis trading investment & finance definition
An arbitrage operation in which an investor takes a long position in one type of security and a short position in a similar security in an attempt to profit from a change in the basis between the two ...
Basis Point
A basis point is one-hundredth of a percent. For example if a bond's yield drops from 6.55 percent to 6.51 percent, it is said to have fallen by 4 basis points.
Basis Point
One 1/100th of 1 per cent., i.e. 0.01%, which is the smallest unit in quoting bond yields.
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Basis Point
(A fraction of a percent)
A basis point is what you get quoted on anything with interest payments involved.
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Basis Point
It is one hundredth of a percentage point, 0.01%, which is used to measure changes in the differences between yields on fixed income securities, as these changes are of very small amounts.
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Definition
Basis swap
A swap whose cash settlement price is calculated based on the basis between a futures contract and the spot price of the underlying commodity or a closely related commodity on a specified date.
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The Basis for Price Patterns
1. Investors are not always rational in the way they set expectations. These irrationalities may lead to expectations being set too low for some assets at some times and too high for other assets at other times.
Stop basis
Definition:
Refers to over-the-counter trading. Method of entering an OTC trade into the trader`s position without reporting the trade on the OTC tape. ...
Basis trading is all about playing the extremes of the cash and futures market.
Basis points are a high precision way to present numbers that are relative to a price. Some software requires the user to enter a number of basis points before performing a calculation.
Basis Trading
Taking opposite positions in the cash and futures market with the intention of profiting from favorable movements in the basis.
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1 basis point = 1/100 of 1%
1% = 100 basis points
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A basis used for depreciation purposes. Unadjusted basis uses the original cost of property or equipment without regard to salvage value.
Oil Basis - Grades Of Crude Oil
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COST BASIS
The cost basis is the original price of an asset - usually the purchase price plus commissions. You use the cost basis to calculate capital gains and capital losses, depreciation, and return on investment.
Gross Basis
Open positions, calculated without the benefit of any netting between long and short positions.
"GTC Order" or "Good Till Cancelled Order" ...
Accrual basis
Definition:
In the context of accounting, practice in which expenses and income are accounted for as if they are earned or incurred, whether or not they have been received or paid. Antithesis of Cash Basis accounting. ...
Basis
Broker
Depth of market (DOM)
Open Outcry Trading at CME
Full map of the CME trading floors
Commodity Trading Advisor (CTA)
General Structure of a Managed Account
General Structure of a Futures Fund
Commodity Pool Operator (CPO) ...
Basis Points See Basis Point.
Basis risk Exposure of a transaction or portfolio to the differences in the price performance of the instruments in the portfolio.
Basis of Stock
If purchased, the amount paid for the stock. If the stock is received as a gift, basis is generally the basis of the previous owner or the fair market value when received.
Basis Point
One gradation on a 100-point scale representing one percent; used especially in expressing variations in the yields of bonds.
Basis point (bps) A value equaling one one-hundredth of a percent (1/100 of 1 percent). Commonly expressed as 0.01. Basis points are often used to compare bond values or interest rates.
Basis point
One-hundredth of one percentage point, or 0.01%. Basis points make for a handy way to state small differences in yield.
Basis -- The differential that exists at any time between the cash, or spot, price of a given commodity and the price of the nearest futures contract for the same or a related commodity.
Basis point (or BPS) - A financial unit of measure that describes the percentage change in value of a security. One basis point is equal to one one-hundredth of one percent, i.e. 0.01%, or as a decimal 0.0001 (see Pip).
BASIS PRICE - A price of a security, sometimes referred to as the security's basis or its yield price, expressed in terms of the yield to be realized by the purchaser. Compare: DOLLAR PRICE.
Basis point
One one-hundredth (.01) of a percentage point. For example, eight percent would be equal to 800 basis points.Yield differences are often quoted in basis points (bps).
Bearer bond ...
Basis Point (BP)
The smallest measure used in quoting yields on fixed income securities. One basis point is one percent of one percent, or 0.01%.
Bear Market
A prolonged period of falling securities prices in a stock market.
Basis price
The reference price used for establishing a physical contract. In option trading it is the price agreed for the underlying should an option be declared, more commonly referred to as the strike price or exercise price.
Basis Points
Indicates changes in what a bond yields. 1 basis point is equivalent to 0.01 percent, so 20 basis points indicate a .20 percent interest rate yield.
Bear Market ...
Basis Risk
The risk associated with an unexpected widening or narrowing of basis between the time a hedge position is established and the time that it is lifted.
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Basis Point: 1) .01% of yield in a fixed-income security. If the T-Bond yield drops from 7.05% to 6.40%, it's declined 65 basis points; 2) Used in referring to changes in price in other than fixed-income securities.
Basis Point
One hundredth of 1%. A measure normally used in the statement of interest rate eg, a change from 5.75% to 5.81% is a change of 6 basis points.
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Basis: The difference between spot (cash) prices and the futures contract price.
Basis Grade: The commodity grade used as the contract standard.
Basis point: The smallest unit used when quoting security yields. One basis point is one one-hundredth of a percent. For example, 100 basis points equal 1%.
Basis Point: One basis point is .01%, or 1/100 of a percentage point. Thus 100 basis points equal 1% percent.
Bear: Someone who has a pessimistic market outlook and believes that stock prices will fall. (Opposite of a Bull) ...
Basis
The total cost an investor pays to acquire a security or asset. It is used to determine capital gains or losses when the asset is sold.
Basis Point
One hundredth of one percent, or 0.01%.
Basis - The spot price minus the futures price.
Best Effort - An order to be executed at the best available price. Discretion is given to the dealer as to when to execute the order.
Basis - The difference between the cash price and futures price.
Basis point - For most currencies, denotes the fourth decimal place in exchange rate and represents 1/100 of one percent (.01%).
Basis - The difference between the current cash price and the futures price of the same commodity. Unless otherwise specified, the price of the nearby futures contract month is generally used to calculate the basis.
Basis Swap -A swap whose cash settlement price is based on Basis.
Bearish - An opinion that expects a decline in price, either by the general market or by an underlying stock, or both.
Basis Point - One hundredth of a percent.
Bear Market - A market distinguished by a prolonged period of declining prices accompanied with widespread pessimism.
Basis: The difference between the spot or cash price of a commodity and the price of the nearest futures contract for the same or a related commodity (typically calculated as cash minus futures).
Basis: The difference between spot (cash) prices and the futures contract price.
Basis points: 0.01% in yield. Increasing from 5.00% to 5.05%, the yield increases by five basis points.
Best-efforts underwriting: Underwriting without a guarantee to the issuer to sell the securities. The underwriters act as brokers.
Basispreis
Der Basispreis gibt den Kurs an, zu dem der Basiswert (Underlying) am Ende der Laufzeit (europäische Option) oder zu jedem Zeitpunkt während der Laufzeit (amerikanische Option) bezogen werden kann.
BASIS POINTS:
Refers to yield on bonds. Each percentage point of yield in bonds equals 100 basis points. If a bond yield changes from 7.25 % to 7.39 %, that's a rise of 14 basis points.
Basis Point - Typically used regarding fixed-income securities (bonds), a basis point represents one-hundredth of a percent. For example, 100 basis points equals 1%.
BASIS POINT: One hundredth of a percent.
BID: Rrice at which a broker/dealer is willing to buy.
BROKER: An individual or a firm that matches buyers and sellers for a fee or a commission.
Basis Points
One basis point equals 0.01% yield of a bond or note and therefore 100 basis points equals 1% of yield.
Bear Market ...
Basis Point - BPS
A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument.
Basis Point
A basis point is equal to one hundredth of one percent. In other words, 100 basis points equals one percent.
Basket Trades ...
Basis Points - A relationship between a bond's price and a yield subdivided into hundredths. One hundred basis points equals 1 percent interest yield.
Basis swap: A type of swap where one floating rate payment is exchanged for another floating rate payment. For example Libor in USD is exchanged for Libor in GBP. This is an example of a cross currency basis swap.
Basis
The difference between the bond's price and its delivery price.
Basis Point ...
Basis risk
The uncertainty about the basis at the time a hedge may be lifted. Hedging substitutes basis risk for price risk.
Basket trades ...
Basis Point .01 percent. Used to measure changes in yields of bonds.
Bear Market General decline in security prices.
Beginning Net Asset Value The market value of a fund share on a predetermined start date.
Basis: The spread between a bond futures price and the cash price of a bond deliverable to the bond futures contract.
Basis Point: One one-hundredth of one percent (1/100 of 1%).
BBK: Bundesbank - the German central bank.
Basis Points The measure of yields on bonds and notes; one basis point equals 0.01% of yield.
Basket Trades Large transactions made up of a number of different stocks.
Basis point
Most often used relating to changes in interest rates. One basis point is 1/100 of a percentage point.
Bear
A person with a generally pessimistic market outlook or a pessimistic view on a sector or specific stock.
 See also: Market, Trading, Investment, Risk, Analysis
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