Basis Risk in Common Probability Distribution Formulas

Basis Risk is the financial risk that traders assume when they hedge a position by holding an opposing position in a derivative, like a futures contract. And is denoted by BR.

Formulas to find Basis Risk in Common Probability Distribution

fxBasis RiskGo

List of variables in Common Probability Distribution formulas

fx Future Price of Contract Go

fx Spot Price of Hedged Asset Go

FAQ

What is the Basis Risk?

Basis Risk is the financial risk that traders assume when they hedge a position by holding an opposing position in a derivative, like a futures contract.

Can the Basis Risk be negative?

{YesorNo}, the Basis Risk, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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