Home > Term: Basis risk
Basis risk
Price risk inherent in forward transactions. Risk that the correlation between the price of a financial future and that of the underlying spot instrument could change so significantly as to diminish the success of the hedging transaction.
- Part of Speech: noun
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
0
Creator
- Harry8L
-
(V.I.P) 574128 points - 100% positive feedback
(London, United Kingdom)
