basis swap

Definition of "basis swap"
  1. A financial agreement that settles in cash, calculated by the difference between a futures contract value and the spot price of the related or underlying commodity at a particular time
How to use "basis swap" in a sentence
  1. The mining company and the investor entered into a basis swap to hedge risks.
  2. To better manage currency risks, the firm used a basis swap.
  3. With a basis swap, the two parties were able to exchange their risk exposures.

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