Meaning BASIS RISK: Uncertainty about the basis at the time a hedge may be lifted. Hedging substitutes basis risk for price risk
More terms such as Basis risk in Dictionary B.
- Definition Bracket:
- Examples A term signifying the extent of an underwriter's commitment in a new issue, e.g., major bracket or minor bracket basis risk definition.
- Definition Basket Options:
- Examples involve the exchange of more than two currencies against a base currency at expiration. The basket option buyer purchases the right, but not the obligation, to receive designated currencies in basis risk explain.
- Definition Bull Market:
- Examples Any market in which prices are in an upward trend basis risk what is.
- Definition Beneficiary:
- Examples Term used to refer to the person who receives the benefits of a trust or the recipient of the proceeds of a life insurance policy basis risk meaning.
- Definition Bi-Weekly Mortgage Loan:
- Examples A mortgage loan on which interest and principal payments are made every half-month (total of 26 payments) as opposed to monthly payments. This results in earlier loan retirement basis risk abbreviation.
