The Importance of FX Futures Pricing and Basis

The difference between the futures price and spot price of a currency pair is referred to as the basis. Basis can be either positive or negative. It will depend on the current relationship between the short-term interest rates of the base and terms currencies being considered. The base currency is the first currency in a currency pair quotation, and the terms currency is the second half of the quotation.
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All information here are provided by CME, a company separate from and unaffiliated with Webull Financial, and do not reflect any official policy or position of Webull. These are not a recommendation or solicitation to buy or sell securities, or use any trading strategy or service.
Lesson List
1
What is FX?
2
Understanding FX Quote Conventions
The Importance of FX Futures Pricing and Basis
4
Understanding the FX Delivery & Settlement Process
5
How to Manage Risk in FX
6
A Look at FX EFP