in the foreign exchange market, it refers to the difference between the forward and spot exchange rates, and basis = spot price-futures price. In the futures market, its meaning and application are more complicated. First, it means that the spot price is higher than the futures price to form a positive basis, and the forward futures price is higher than the recent futures price. At this time, we generally call it futures discount or spot premium. Second, the spot price is lower than the futures price to form a negative basis, and the forward futures price is lower than the recent futures price. At this time, we generally call it futures premium or spot discount.
in terms of application, it was first produced between near and forward exchange rates, and was basically used in the field of international trade. There are also discounts in banks, which are generally two or three digits. Under direct quotations, as long as the large number is in front and the decimal number is behind, it is a discount. Under the introduction price method, contrary to the direct opposite, the decimal number is in front and the large number is behind, which also refers to a discount.