Basis

(1) In futures markets, the price of the futures contract minus the spot price.That is, the difference between the forward price/yield and spot price/yield of futures (and also options).Basis is divided into carry basis and value or excess basis.Carry basis is the theoretical price of the future, minus the spot price of the underlying asset, and is equal to the net cost of carry.Excess /value basis is the difference between the theoretical price of the future and its market price.(2) More generally, the relationship between prices/yields in related markets.(3) The basis upon which interest rates are calculated for bond and money market instruments.