Basis and Convergence: Cash vs. Futures
This lesson is part of the course
In this lesson
You track the basis of local cash corn against the futures for nine weeks, flag when it strengthens or weakens and chart how cash and futures converge.
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Lessons in this course
- Contract Specs: Contract Value, Tick Size & Tick Value Locked
- Futures P&L: Long, Short, per Contract and per Position Locked
- Initial & Maintenance Margin, Mark-to-Market and Margin Calls Locked
- Leverage and Position Sizing from Risk per Trade Locked
- Basis and Convergence: Cash vs. Futures Locked
- Contango, Backwardation and Roll Yield Locked
- Hedging a Producer: Hedge Ratio, Hedged vs. Unhedged Revenue Locked
- Calendar Spreads: Entry, Exit and P&L Locked