narrow basis

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.
References in periodicals archive ?
8) The TVPA defines a narrow basis of liability, creates a ten-year statute of limitations, and requires the claimant to exhaust remedies in the place where abuse occurred before bringing a suit in U.
We will certainly be seeking legal advice with a view to challenging this doubtful and narrow basis for rejecting our application.
The Court affirmed the wide latitude of state agencies to issue rules, and the very narrow basis to challenge government action.
It was also highly relevant that the press did not contest the proceedings and that the Attorney General, representing the 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.
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.
Once in a while, some issue will come up where I'm not completely satisfied by the detail of information, and I'll ask for a special report, or I'll ask to schedule a second meeting that could include a different group of managers where we could discuss that issue specifically, on a narrow basis, and the general manager will participate in that, as well.
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.
While this result is not unexpected given the language of the EPC rule, given the narrow basis for the decision, it should have very limited impact on Geron's ability to protect our hESC technologies in Europe," said David J.
He said: "That is a narrow basis on which to base such a massive task.