Basis

Basis may refer to:

In economics:

In mathematics:

Basis trading

Basis trading is a financial trading strategy which consists of the purchase of a particular financial instrument or commodity and the sale of its related derivative (for example the purchase of a particular bond and the sale of a related futures contract).

Basis trading is done when the investor feels that the two instruments are mispriced relative to one other and that the mispricing will correct itself so that the gain on one side of the trade will more than cancel out the loss on the other side of the trade. In the case of such a trade taking place on a security and its related futures contract, the trade will be profitable if the purchase price plus the net cost of carry is less than the futures price.

Basis of futures

Basis can be defined as the difference between the spot price of a given cash market asset and the price of its related futures contract. There will be a different basis for each delivery month for each contract. Usually, basis is defined as cash price minus futures price, however, the alternative definition, future price minus cash, is also used. A basis trade profits from the closing of an unwarranted gap between the futures contract and the associated cash market instrument.

Ground (Dzogchen)

In Dzogchen Ground (Tibetan: གཞི, Wylie: gzhi ; IAST: āśraya or sthāna) is the primordial state. It is an essential component of the Dzogchen tradition for both the Bonpo and the Nyingmapa. Knowledge of this Ground is called rigpa.

Etymology

The Tibetan: གཞི, Wylie: gzhi has been rendered as 'Base', 'Basis', 'Ground' and 'Ground of Being' amongst other English glosses. According to Dudjom the original Sanskrit-term is āśraya (IAST; Sanskrit Devanagari: आश्रय; Etymology: आ- √श्रि), but it could also be sthāna.

Sam van Schaik states that gzhi is to be distinguished from kun gzhi. In the Seminal Heart series a distinction is made between kun gzhi, c.q. ālaya, "the base of it all", the samsaric basis of consciousness, of all the samsaric appearances; and gzhi, "the nirvanic basis known as the ground."

Three qualities

According to the Dzogchen-teachings, the Ground or Buddha-nature has three qualities: