Calculate Basis

Calculate the basis - the difference between the spot price and the futures price (Basis = Spot - Futures). Basis represents the net cost of carry and can be positive (contango) or negative (backwardation). Understanding basis is crucial for hedging strategies, arbitrage opportunities, and futures contract pricing. Basis typically converges to zero as the futures contract approaches expiry. Used extensively in commodity trading, equity index arbitrage, and bond futures hedging.