short the basis

Definition of "short the basis"
  1. A strategy where futures are bought to guard against a duty to sell in immediate or cash markets
How to use "short the basis" in a sentence
  1. The farmer decided to short the basis to protect against a sudden drop in grain prices.
  2. The decision to short the basis helps in maintaining a balance between futures and cash markets.
  3. The shifting market trends compelled the trader to short the basis.

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