Basis is the difference in price between the futures price and the price of the underlying asset. The basis can be both positive and negative. By the time the contract expires, the basis will be zero, as futures and spot prices will be equal.
Basis
Basis is the difference in price between the futures price and the price of the underlying asset. The basis can be both positive and negative. By the time the contract expires, the basis will be zero, as futures and spot prices will be equal.