Strong Basis
Small differential between futures and cash prices in foreign exchange trading. A weakened strong basis is preferential for a Forex Trader who is looking to hedge against price increases, as this would allow their Unrealized gains to grow. For forex traders looking to hedge against a decrease in price, a strengthened strong basis is preferable as it would mean their unrealized losses are kept to a minimum.
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Delivery Point
exclusive of tax
European Banking Federation (FBE)