Indices · Index specialist topics · lesson 5 of 9 · 9 min read · David Alexander
The cash-futures basis, properly
basis
The difference between an index future's price and the cash index. It is financing to expiry minus the dividends expected before it, so it is a cost of carry rather than a forecast - a future above cash says nothing about whether anyone expects the index to rise.
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.