Basis

1. Market conventions.

The method or convention under which a value or price has been calculated.

Sometimes known as the base.

2. Risk identification.

Abbreviation for basis risk.

3. Futures markets.

In futures markets, the price differential between (1) the price of the asset underlying the futures contract and (2) the price of the futures contract.

See also

• Accruals basis
• Base
• Basis risk
• Convention
• Forward contract
• Futures contract
• Risk identification
• Underlying asset