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Narrow Basis

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Narrow Basis
A situation in which there is only a small difference between the spot price and the futures price for a commodity. This occurs when investors expect there to be little shift in supply or demand between the present time and when the commodity is delivered under the futures contract. A wide basis often becomes a narrow basis the closer a futures contract comes to maturity because there is less uncertainty; when this does not occur, arbitrage opportunities arise.

narrow basis
A market condition in which only a small difference exists between a spot price and futures prices for the same type of contract. Compare wide basis.


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It was also highly relevant the press did not contest the proceedings and the Attorney General, representing public interest,did not oppose an injunction under the narrow basis of Article 8 of the Human Rights Convention, which requires respect for someone's private and family life.
That ruling outraged term limit supporters, who accused Judge Stephen Reinhardt of trying to void the law on such a narrow basis that his decision would not provoke review by the Supreme Court.
The Task Force has pointed to the unsettled question of whether specialization should be on a broad-based scale or on a narrow basis.
 
 
 
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