Cryptocurrency Q&A What is EQ in futures?

What is EQ in futures?

AmyDavis AmyDavis Sun Nov 17 2024 | 5 answers 1347
I'm trying to understand the concept of EQ in the context of futures. Could someone explain what EQ stands for and how it's relevant in futures trading? What is EQ in futures?

5 answers

CryptoBaroness CryptoBaroness Tue Nov 19 2024
Basis represents the discrepancy in pricing that exists between a futures contract and the corresponding spot index value.

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DavidJohnson DavidJohnson Mon Nov 18 2024
In financial markets, this concept is particularly significant when discussing Equity Index futures.

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GeishaCharm GeishaCharm Mon Nov 18 2024
The futures price, which reflects expectations of future market conditions, often diverges from the current spot index value.

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Lorenzo Lorenzo Mon Nov 18 2024
To quantify this divergence, the Equity Index futures basis is calculated by subtracting the spot index value from the futures price.

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BlockchainBaronessGuard BlockchainBaronessGuard Mon Nov 18 2024
This calculation provides valuable insights into market sentiment and expectations regarding future price movements.

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