The difference between the cash price and the futures price is called the ________.

Name: The difference between the cash price and the futures price is called the ________.
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Question

Quizplus · Accepted Answer

The difference between the cash price and the futures price is known as the basis. It reflects the supply and demand conditions of a particular commodity in a specific location. The basis can be positive or negative, and it's essential to understand when trading futures contracts.

The Difference Between the Cash Price and the Futures Price