Part 1: Core Skills of Basis Trading

Gain an understanding of the fundamental concepts and practices of basis trading.

  • Learn how a basis trading operation makes its money.
  • Converse in the language of basis trading.
  • Carry out basis transactions, including the execution of buy basis, sell basis and spreading activities.
  • Do proper and accurate basis calculations.
  • Identify basis patterns and evaluate basis risk.
  • Aid in the administration and execution of long-the-basis positions.
  • Aid in the administration and execution of short-the-basis positions.

Part 2: Basis Trading Administration

Develop a working knowledge of the proper procedures and routines involved in the execution and administration of a grain company’s daily basis trading activities.

  • Identify and evaluate the company’s price risk position.
  • Execute appropriate futures transactions based on company hedging policies.
  • Reconcile statements of cash and futures positions.
  • Calculate financial requirements and needs of cash and futures positions.
  • Identify and evaluate the company’s basis risk position.
  • Gain an understanding and appreciation for real world grain merchandising.