Basis

A basis in mathematics, finance, science, and other contexts is a foundational concept or valuation measure. It can also be part of an organization's name. Specific meanings include:

Finance and accounting

• Adjusted basis, the net cost of an asset after adjusting for various tax-related items
• Basis point, 0.01%, often used in the context of interest rates
• Basis swap, an interest rate swap
• Cost basis, in income tax law, the original cost of property adjusted for factors such as depreciation
• Tax basis, cost of an asset

Securities markets and trading strategies

• Basis trading, a trading strategy consisting of the purchase of a security and the sale of a similar security

1. Fixed income markets:

• Treasury basis trade, a leveraged arbitrage strategy exploiting price differences between Treasury securities and futures contracts
• Index arbitrage, a strategy that exploits price differences between a stock index and its futures contract

Commodities and physical assets:

• Commodity basis trade (Futures contract, Commodity market), a hedging or arbitrage strategy involving spot and futures prices in commodity markets

Equities and funds, including ETFs:

• Equity basis trade (Merger arbitrage and ETF arbitrage → Exchange-traded fund § Arbitrage mechanism), including arbitrage between ETFs and NAVs or spreads in merger arbitrage
• Dividend arbitrage (Dividend stripping), a tax optimization strategy involving dividend-paying equities

Derivatives and synthetics:

• Options basis trade (Box spread, Options arbitrage § Conversion, Put–call parity), strategies involving synthetic positions like box spreads or conversions
• Synthetic tax arbitrage, historical securities lending strategies used by funds to capture or simulate tax benefits

Digital assets:

• Crypto basis trade, a trading strategy using price differentials between spot and futures in digital assets

Controversial schemes:

• CumEx trading (CumEx-Files), a controversial tax arbitrage strategy involving dividend withholding refunds in Europe

Pricing concepts:

• Basis of futures, the value differential between a future and the spot price
• Basis (options), the value differential between a call option and a put option

Mathematics and technology

• Basis function
• Basis (linear algebra)
  • Dual basis
  • Orthonormal basis
  • Schauder basis
• Basis (universal algebra)
• Basis of a matroid
• Generating set of an ideal:
  • Gröbner basis
  • Hilbert's basis theorem
• Generating set of a group
• Base (topology)
• Change of basis
• Greedoid
• Normal basis
• Polynomial basis
• Radial basis function
• Standard basis
• Transcendence basis of a field extension
• Basis database

Chemistry

• Basis (crystal structure), the positions of the atoms inside the unit cell
• Basis set (chemistry)
• Dry basis, an expression of a calculation in which the presence of water is ignored

Organizations

• Bangladesh Association of Software and Information Services
• Basis Educational Group
• Basis Schools, a group of schools in Arizona, Washington, D.C., and Texas
• Basis Technology Corp., a text analytics company

People

• Dimitris Basis, Greek singer
• Liron Basis (born 1974), Israeli footballer

See also

• All pages with titles beginning with Basis
• All pages with titles containing Basis
• Base (disambiguation)
• Basic (disambiguation)
• Basis of Union (disambiguation)
• Basis set (disambiguation)