Basis Risk

Basis risk is the risk that the relationship between the prices of a security and the instrument used to hedge will change, thereby reducing the effectiveness of the hedge. In other words, risk of varying fluctuations of the spot and the futures price between the moment at which a position is opened and the moment at which it is closed.

Nearby pages
Basisthashram, Baskerville, Basket, Basket case, Basket hilt