Index futures: related pages

A basis risk is the risk that the value of a hedge may not move in perfect opposition to the position it hedges.

A period of volatility caused by the expiry of two classes of derivatives on the same underlying.

The price of a futures contract being greater than the spot price of the underlying (usually a commodity).

Backwardation is the opposite of forwardation; it occurs when the price of the future is less than the spot price of underlying commodity.

Simultaneous transactions in the same security to profit from a price disparity between markets.