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Understanding commodity futures Basis

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Business Development141 W. Jackson , IL 60604-2994312-341-7955 fax: 312-341-3027New York OfficeOne Exchange Plaza55 Broadway, Suite 2602New York, NY 10006212-943-0102 fax: 212-943-0109European OfficeSt. Michael s House1 George YardLondon EC3V 9DHUnited Kingdom44-20-7929-0021 fax: 44-20-7929-0558Latin American Contact52-55-5605-1136 fax: on recycled paperwith soybean oil BASISGeneral Information SeriesUnderstanding Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Keeping History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Putting Basis to Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Taking Basis to the Next Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19For More Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Most Commonly Used Terms.

1 simple equation. And the answer is a key to improving your profitability. Basis is used to determine: • the best time to buy or sell • when to use the futures market to hedge a …

  Future, Understanding, Commodity, Basis, Understanding commodity futures basis

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