Basis

The basis is the difference between an asset's cash price and the price of a derivative on it. Basis relationships are normally arbitraged tight, so a distorted basis is a signal that something is interfering with one of the two markets.

instruments and markets · updated 2026-10-16

Where does basis come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Cash versus derivatives schemes — A cash versus derivatives scheme establishes a large derivative position and then trades the smaller underlying market at a deliberate loss, in order to move the reference price the derivative settles against.

Enforcement actions involving these techniques

See also

• Cash market — The cash market is the market in the underlying asset itself rather than in derivatives on it. Manipulating one to profit in the o…
• Futures contract — A futures contract is a standardised agreement to buy or sell an asset at a set price on a set future date, traded on a designated…

Terms that refer here

Arbitrage · Contango and backwardation

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