# Basis, weak (weak basis)

- Canonical URL: https://www.gerhardmerk.de/basis-weak-weak-basis
- Post ID: 593607
- Modified: 2023-07-25T20:58:42+00:00
- Language: en

## Definition

On the stock exchange, a comparatively large difference between the spot price and the forward price of a commodity. A weak basis is often also called a "broad basis" or "more negative basis". - In particular, a weak basis occurs mainly in grain at harvest time, when stocks are abundant. Buyers may now lower their purchase bid. As spot prices fall relative to futures, the basis weakens; it widens, as it is also called. A weak basis generally indicates a market that is poor to sell but good to buy. - See commodity futures contract. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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