johndeere1 - 8/28/2024 08:27
Brahamfiremen - 8/27/2024 20:22
#2. You can roll a basis contract, but you'll get the difference in basis. Say you roll to march, which is. 00 you'll gain 9 cents, BUT lose the difference in jan- march futures. You need to look at Futures and basis and do the math to figure out if the roll pays or not. They will also most likely be fees to roll, 1 or 2 cents.
et
Don’t you get or give up the futures difference on the basis? Basis is already locked in. If futures are up 10 cents then you basis widens by 10 cents. If you roll into a month that the futures is down 10 cents then you basis improves by 10 cents.
Basis contract for dummies
