Basis trading
An arbitrage strategy that seeks to take advantage of mispricing between two similar currency contracts. The trader will purchase a contract on one currency while selling one on another (or a futures contract on the same asset). The goal is to profit from the difference between the purchase price with carrying costs and the Futures price. Similar to spread trading. Also called cash-and-carry trading.

Browse by Subjects

Popular Forex Terms

futures exchange
share incentive scheme
consumed cost
New York Stock Exchange (NYSE)
econometrics
depress
Down-and-in barrier option
automated search and match (ASAM)
optionholder
non monetary