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Help.understanding basis contract.
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mn_feeder
Posted 5/6/2021 19:10 (#8990987 - in reply to #8990943)
Subject: RE: Help.understanding basis contract.


MN
You rolled your basis contract through two inverses.

Example (made up numbers)

CN1 @ 750
CU1 @ 700

If you have a basis contract @ +50N that today (in the made up example) would have a cash value of 800, which can be expressed as +50N OR +100U.

As contracts expire you’re contract got rolled through those inverses and you picked up the spread.
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