BROWSE

Narrow Basis

What is 'Narrow Basis'

A condition found in futures markets in which the spot price of underlying commodities is close to the futures price of the same contract.

Explaining 'Narrow Basis'

A narrow basis suggests that the market is efficient, as the supply of and demand for the underlying commodity are in equilibrium.

The spot price and futures price should converge at maturity of the futures contract. If they don't, there is an arbitrage opportunity.


Further Reading


The structure of economic modeling of the potential impacts of climate change: grafting gross underestimation of risk onto already narrow science models
www.aeaweb.org [PDF]
… But it is an outcome we can – and must – achieve. "Narrow banking" is not boring Page 11. CSFI … The relevant criterion is the potential loss from the varieties of economic exposure in a bank's balance sheet … The large failed US banks would have paid four basis points, or less …

Financial deregulation, demand for narrow money and monetary policy in AustraliaFinancial deregulation, demand for narrow money and monetary policy in Australia
www.tandfonline.com [PDF]
… But it is an outcome we can – and must – achieve. "Narrow banking" is not boring Page 11. CSFI … The relevant criterion is the potential loss from the varieties of economic exposure in a bank's balance sheet … The large failed US banks would have paid four basis points, or less …

Economic evaluation of ultra narrow row cotton on a whole farm basis.Economic evaluation of ultra narrow row cotton on a whole farm basis.
www.cabdirect.org [PDF]
… But it is an outcome we can – and must – achieve. "Narrow banking" is not boring Page 11. CSFI … The relevant criterion is the potential loss from the varieties of economic exposure in a bank's balance sheet … The large failed US banks would have paid four basis points, or less …

Trends in park tourism: Economics, finance and managementTrends in park tourism: Economics, finance and management
www.tandfonline.com [PDF]
… But it is an outcome we can – and must – achieve. "Narrow banking" is not boring Page 11. CSFI … The relevant criterion is the potential loss from the varieties of economic exposure in a bank's balance sheet … The large failed US banks would have paid four basis points, or less …

Credit markets and narrow bankingCredit markets and narrow banking
papers.ssrn.com [PDF]
… But it is an outcome we can – and must – achieve. "Narrow banking" is not boring Page 11. CSFI … The relevant criterion is the potential loss from the varieties of economic exposure in a bank's balance sheet … The large failed US banks would have paid four basis points, or less …

Modeling the demand for narrow money in the United Kingdom and the United StatesModeling the demand for narrow money in the United Kingdom and the United States
www.sciencedirect.com [PDF]
… But it is an outcome we can – and must – achieve. "Narrow banking" is not boring Page 11. CSFI … The relevant criterion is the potential loss from the varieties of economic exposure in a bank's balance sheet … The large failed US banks would have paid four basis points, or less …


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