Futures · Futures specialist topics · lesson 4 of 9 · 7 min read · David Alexander
The basis, properly: fair value in full
fair value
The basis's computed anchor: the carry arithmetic per family, in numbers - an index future's fair gap is the spot level times net financing (rates minus dividend yield) over the remaining term; a physical fair gap is the storage-and-financing bound; a currency fair gap is the rate differential. Computable per family in one line, and every basis read in the track stands on it.
This lesson is part of the advanced modules.
Modules 6 to 8 are included with a paid account. The definitional summary above is the whole of this page until then.