Short the Basis(redirected from Shorting the Basis)
Short the Basis
In futures, to take a short position on a commodity and a long position on a futures contract on the same commodity. This allows the investor to lock in the price of the commodity for when he/she must make delivery on the commodity. Shorting the basis is important especially when the investor believes that the price of the commodity will soon rise. See also: Long the basis.
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