Global Information Lookup Global Information

Basis trading information


Basis trading is a financial trading strategy which consists of the purchase of a particular financial instrument or commodity and the sale of its related derivative (for example the purchase of a particular bond and the sale of a related futures contract).

Basis trading is done when the investor feels that the two instruments are mispriced relative to one other and that the mispricing will correct itself so that the gain on one side of the trade will more than cancel out the loss on the other side of the trade. In the case of such a trade taking place on a security and its related futures contract, the trade will be profitable if the purchase price plus the net cost of carry is less than the futures price.

and 25 Related for: Basis trading information

Request time (Page generated in 0.8208 seconds.)

Basis trading

Last Update:

Basis trading is a financial trading strategy which consists of the purchase of a particular financial instrument or commodity and the sale of its related...

Word Count : 221

Basis

Last Update:

for various tax-related items Basis point, 0.01%, often used in the context of interest rates Basis trading, a trading strategy consisting of the purchase...

Word Count : 296

Basis swap

Last Update:

A basis swap is an interest rate swap which involves the exchange of two floating rate financial instruments. A basis swap functions as a floating-floating...

Word Count : 319

Insider trading

Last Update:

Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information...

Word Count : 10559

Basis point

Last Update:

50 basis points over SOFR, which is commonly expressed as "S+50bps" or simply "S+50". The term "basis point" has its origins in trading the "basis" or...

Word Count : 836

Algorithmic trading

Last Update:

Algorithmic trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and...

Word Count : 8768

Carbon emission trading

Last Update:

Carbon emission trading (also called carbon market, emission trading scheme (ETS) or cap and trade) is a type of emission trading scheme designed for...

Word Count : 11107

Basis Nord

Last Update:

Basis Nord Basis Nord ("Base North") was a secret naval base of Nazi Germany's Kriegsmarine in Zapadnaya Litsa, west of Murmansk provided by the Soviet...

Word Count : 1462

Financial market

Last Update:

other without using an exchange. Trading of currencies and bonds is largely on a bilateral basis, although some bonds trade on a stock exchange, and people...

Word Count : 4428

Trade

Last Update:

circumstances, trading at market price between locations can benefit both locations. Different types of traders may specialize in trading different kinds...

Word Count : 6770

Open outcry

Last Update:

trading floor. It involves shouting and the use of hand signals to transfer information primarily about buy and sell orders. The part of the trading floor...

Word Count : 1317

Trading halt

Last Update:

A trading halt occurs in the U.S. when a stock exchange stops trading on a specific security for a certain time period. The halt, which can happen a few...

Word Count : 575

Trade bloc

Last Update:

on the level of economic integration, trade blocs can be classified as preferential trading areas, free-trade areas, customs unions, common markets,...

Word Count : 1026

General Agreement on Tariffs and Trade

Last Update:

reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis." The GATT was first discussed...

Word Count : 3598

Trading strategy

Last Update:

The difference between short trading and long-term investing is in the opposite approach and principles. Going short trading would mean to research and...

Word Count : 1209

Grammage

Last Update:

trading practice. Historically, this convention is the product of pragmatic considerations such as the size of a sheet mold. By using the same basis sheet...

Word Count : 1272

Basis pursuit

Last Update:

it is desirable to trade off exact equality of Ax and y in exchange for a sparser x, basis pursuit denoising is preferred. Basis pursuit problems can...

Word Count : 518

DAX

Last Update:

the Xetra trading venue closes based on the floor trading at the Börse Frankfurt trading venue. The L-DAX Index basis is the "floor" trade (Parketthandel)...

Word Count : 923

Automated trading system

Last Update:

An automated trading system (ATS), a subset of algorithmic trading, uses a computer program to create buy and sell orders and automatically submits the...

Word Count : 2914

Fare basis code

Last Update:

A fare basis code (often just referred to as a fare basis) is an alphabetic or alpha-numeric code used by airlines to identify a fare type and allow airline...

Word Count : 1125

Accrual

Last Update:

recognized before cash is paid out. The basis of accounting which is based on accruals is called accrual basis Accrued revenue (or accrued assets) is an...

Word Count : 1184

Vote trading

Last Update:

systems do not make vote trading a formal process, so vote trading is very often informal and thus not binding. One form of vote trading that is formal is one...

Word Count : 1342

European Union Emissions Trading System

Last Update:

The European Union Emissions Trading System (EU ETS) is a carbon emission trading scheme (or cap and trade scheme) which began in 2005 and is intended...

Word Count : 12575

Trading curb

Last Update:

frame. When triggered, circuit breakers either stop trading for a small amount of time or close trading early in order to allow accurate information to flow...

Word Count : 2369

LMR Partners

Last Update:

were basis trades which was the primary method that LMR made money and was by far its biggest wager. LMR had to reduce its investments and trading activities...

Word Count : 784

PDF Search Engine © AllGlobal.net