What does a wide basis mean?
A wide basis is a condition found in futures markets whereby the local cash (spot) price of a commodity is relatively far from its futures price. It is the opposite of a narrow basis, in which the spot price and futures prices are very close together.
What is a narrow basis?
A narrow basis is a market condition in which the gap between local cash prices and futures prices is relatively small. Such a convergence between spot price and futures price is associated with highly liquid and stable market conditions.
What does wide mean in stocks?
Wide and loose trading is just that-a stock that is up 7% one week, down 4% the next, up 4% the week after, and then down 5%. In other words, the stock is whipping up and down day after day, week after week, as the bulls and bears battle it out.
What does it mean to be long the basis?
What Is Long the Basis? Long the basis is a trading strategy in which an investor who owns or has bought a commodity hedges their investment, or gives themselves a little buffer against potential market fluctuations, by selling futures contracts on that commodity.
How do cattle futures work?
Live cattle futures are standardized, exchange-traded contracts on the Chicago Mercantile Exchange (CME). The contracts represent the delivery of full-grown cattle that are ready to be sold to meat processors, having reached a weight of between around 1,200 and 1,400 pounds.
What weight are live cattle futures based on?
Each Live Cattle futures contract represents 40,000 pounds with a minimum price fluctuation of $. 00025 per pound, or $10 per tick. The contract trades Monday-Friday from 8:30 a.m. to 1:05 p.m. Central Time (CT).
What is a wide economic moat?
A wide economic moat is a type of sustainable competitive advantage possessed by a business that makes it difficult for rivals to wear down its market share. The wider the moat, the more difficult it would be for an invader to reach the castle.
What does a wide market mean?
A wide market is a market with considerable profit margins or a wide spread. In the world of investments, a wide market is one where there is a relatively large spread between bid and offer prices on some investment products.
What does Basis mean in finance?
In finance, basis is generally used to refer to the expenses or total costs of an investment. It can also be used to refer to the difference between the spot price of an asset and its corresponding derivative futures contract.
What does it mean when a basis strengthens?
Two terms used to describe a changing basis are strengthening and weakening. If basis becomes more positive or less negative, the basis is said to be strengthening; and if the basis becomes less positive or more negative, the basis is said to be weakening.
How much is a cattle futures contract?
The tick size is $0.00025 per pound or $10 per contract for Live Cattle and $12.50 per contract for Feeder Cattle….#2 – Cattle futures contract specifications.
| Live Cattle | Feeder Cattle | |
|---|---|---|
| Contract Size | 40,000 pounds | 50,000 pounds |
| Price Unit | Cents per 100 pounds | Cents per 100 pounds |
How much is a Live Cattle futures contract?
Live cattle futures contract specifications. $0.025/cwt (0.025 cents per pound), worth $10.00 per contract. Live cattle futures trade electronically on the Globex® trading platform Monday 9:30 a.m. U.S. ET to 2:05 p.m. U.S. ET.
What is the definition of company-wide in English?
Definition of “company-wide” – English Dictionary. “company-wide” in Business English. › relating to or affecting the whole of a company: There is a company-wide recruitment freeze in place. The CEO is to make a rare companywide announcement next week.
What does basis mean in financial terms?
Financial Definition of basis. Because of this, when the investor sells some of the shares, he or she must identify which shares from the ” inventory ” were sold in order to calculate capital gains or losses. In general, investors want to minimize taxable gains by selling the shares with the highest basis first.
What is the meaning of firm in English?
Kids Definition of firm (Entry 2 of 3) 1 : to make or become hard or solid Gently firm the soil. The gelatin will firm in an hour. 2 : to make more secure or strong She firmed her grip on the racquet.
What is the meaning of firmfirmed?
firmed; firming. Kids Definition of firm (Entry 2 of 3) 1 : to make or become hard or solid Gently firm the soil. The gelatin will firm in an hour.